Northern Trust's Sturkenboom on Inflation

The video discusses the role of the dollar in controlling inflation, the Fed's monetary policy, and the potential for recession in 2022. It also covers the impact of the Omicron variant on the global economy and market reactions to shifts in cash holdings. The discussion highlights the Fed's challenges in managing inflation and interest rates, the risks posed by Omicron, and the importance of looking at underlying growth trajectories.

What role does the dollar play in the current inflationary environment?

• It increases inflationary pressures.

• It has no impact on inflation.

• It serves as an anti-inflation weapon.

• It acts as a new inflationary tool.

What is the market's expectation for Fed rate hikes in 2022 and 2023?

• At least two rate hikes each year.

• No rate hikes expected.

• At least three rate hikes each year.

• At least one rate hike each year.

What challenge do companies face regarding price increases?

• They struggle to pass on price increases.

• They can easily pass on price increases.

• They are unaffected by price increases.

• They benefit from price increases.

What is the Fed's limitation in controlling the economy?

• It can control everything.

• It has no control over the economy.

• It cannot control interest rates.

• It cannot control everything due to lag times.

What is the Fed's strategy for normalizing monetary policy?

• Ignoring inflation risks.

• Using QE tapering to reassess inflation risks.

• Reducing interest rates.

• Increasing interest rates immediately.

How does the Omicron variant impact global markets?

• It only affects European markets.

• It poses a headwind and potential supply chain disruptions.

• It has no impact on markets.

• It boosts market growth.

What does a shift to cash indicate according to the Bank of America survey?

• An indication of economic growth.

• A sign of market collapse.

• A contrarian buy signal.

• A sign of market stability.