What Is the Fed's Next Move Now?

Mark Cabana from Bank of America discusses the market's expectations for rate hikes, the potential for faster tapering by the Fed, and the impact of a hawkish pivot on real yields and risky assets. He also addresses global risks, such as COVID-19, and their implications for the US economy. Finally, he provides insights into investment strategies in response to changes in the yield curve.

What is the market's expectation for rate hikes by the end of next year?

• Three hikes

• One hike

• Two hikes

• Four hikes

What is the Fed's potential response to inflation risks according to Mark Cabana?

• Decrease rate hikes

• Increase rate hikes

• Pivot to acknowledge inflation risks

• Maintain current policy

What is the likelihood of the Fed announcing a faster pace of taper in December?

• Already decided

• Unlikely

• Somewhat likely

• Very likely

What could the Fed potentially do by the March meeting next year?

• Announce a new taper

• Increase Treasury purchases

• Stop the taper early

• Finish the taper

What is the expected impact of a hawkish Fed pivot on real rates?

• Decrease real rates

• No change in real rates

• Increase real rates

• Stabilize real rates

How does Mark Cabana view the impact of global events like COVID-19 on the US economy?

• Major risk to US growth

• Positive impact on US economy

• No impact on US economy

• Downside risk but US fundamentals remain strong

What is the recommended strategy for dealing with the current yield curve situation?

• Long duration

• Short duration

• Hold steady

• Increase duration