Fed Rate Hikes Increase Risk of Recession, Northern Trust's McDonald Says

The video discusses the impact of Washington DC events on US equities, highlighting the market's focus on trade risks and economic factors. It explores the implications of monetary policy, emphasizing the need for caution in interest rate hikes to avoid recession. The discussion extends to inflation trends, noting structural factors that may keep it low. The video also examines the effects of US and UK multilateralism on global markets and provides an investment outlook, predicting positive but moderate returns in fixed income and equities.

What is the primary focus of the market according to the first section?

• Political stability in Washington DC

• Federal Reserve's interest rates

• US-China trade negotiations

• Technological advancements

What risk does the Federal Reserve face according to the second section?

• Over-reliance on multilateral institutions

• Ignoring inflation trends

• Normalizing policy too quickly

• Raising interest rates too slowly

What could potentially increase the risk of a recession?

• Several interest rate hikes next year

• An increase in technological advancements

• Two interest rate hikes this year

• A decrease in inflation

What is a significant factor in keeping long-term inflation low?

• Increased raw material costs

• Technological advancements

• Higher interest rates

• Global economic instability

How is the US positioned in the global economic landscape?

• Leading in multilateral support

• Struggling with economic self-sufficiency

• Self-sufficient and less reliant on the IMF

• Highly dependent on multilateral institutions

What is the expected return for fixed income investments over the next five years?

• Unpredictable

• High and volatile

• Low but positive

• Negative

Why are stock market returns expected to be lower than historical averages?

• High inflation rates

• Decreased investor interest

• Stocks being relatively expensive

• Increased market volatility