Fed's Going to Hike Two More Times: Citigroup GM's Chua

The video discusses the economic outlook, focusing on the potential for a recession and the Federal Reserve's policy stance. It highlights the persistence of inflation, driven by a tight labor market and resilient service sector, despite easing supply chains and energy prices. The discussion also covers the housing market's role in inflation and the expected timeline for Fed rate hikes, suggesting a recession may be necessary to curb inflation.

What is the Federal Reserve's expected action according to the transcript?

• Cut interest rates immediately

• Hike interest rates two more times

• Reduce inflation to 1%

• Maintain current interest rates

What is one of the main drivers of persistent inflation mentioned in the transcript?

• Stable wage growth

• Tight labor market

• Decreasing energy prices

• Weak labor market

How does the service sector contribute to inflation persistence?

• It is shrinking rapidly

• It is resilient and less credit-intensive

• It is not affected by credit conditions

• It is highly credit-intensive

What is the expected timeline for the Fed to potentially cut rates?

• By the end of 2023

• Immediately after the next hike

• In the first quarter of 2024

• In the second quarter of 2024

What is the necessary byproduct of bringing inflation down according to the transcript?

• Increased employment

• Economic expansion

• Stable housing market

• Recession