RHB: Fed To Hike FFR By 25 bps In 2022

The transcript discusses the Federal Reserve's potential rate hikes and market reactions, emphasizing the disconnect between forecasts and actual paths. It highlights market expectations, reactions to Fed announcements, and the impact on equities and money markets. The analysis covers the Treasury curve, economic indicators, and supply chain issues. It also explores currency market trends, predicting a peak for the dollar in 2022, and a global economic recovery. Finally, it compares China's structural decline with India's growth potential, considering geopolitical and economic factors.

What is the market's general perception of the Federal Reserve's dot plots?

• They are considered accurate predictions.

• They are seen as unreliable forecasts.

• They are ignored by the market.

• They are used to set interest rates.

Why are US equities rallying according to the transcript?

• Due to a decrease in interest rates.

• Because of strong corporate earnings.

• As a result of market expectations being met.

• Due to a new fiscal stimulus package.

What historical trend is noted about US GDP in the first quarter?

• It is unpredictable.

• It remains stable.

• It often slows down.

• It consistently grows.

What is the expected impact of supply chain congestion abatement on inflation?

• It will increase inflation.

• It will stabilize inflation.

• It will decrease inflation.

• It will have no effect.

What is the geopolitical stance of the developed world towards China's economic power?

• They are unaware of it.

• They want to limit its acceleration.

• They are indifferent.

• They support its growth.

What is the structural economic condition of China compared to?

• India's current growth phase.

• The United States in the 2000s.

• Japan's economic conditions.

• Europe's financial crisis.

What is the suggested investment strategy regarding China and India?

• Avoid both China and India.

• Invest equally in both countries.

• Invest heavily in China.

• Short China and go long on India.