Fed’s 50 Basis Point Cut Probably Taken Off Table, Says Vanguard Markets’s Innes

The video discusses the impact of recent U.S. jobs numbers on the Federal Reserve's interest rate policy, suggesting that a 50 basis point cut is unlikely. It highlights the importance of inflation metrics, particularly the CPI data, in shaping the Fed's rate cut expectations. The discussion also covers the role of global central banks in stabilizing currency markets and the demand for the U.S. dollar amid economic weaknesses in the eurozone and China.

What was the initial expectation for the Fed's interest rate cut before the U.S. jobs report?

• A 25 basis point cut

• A 50 basis point cut

• No change in interest rates

• A 75 basis point cut

What inflation level could potentially alter the Fed's rate cut expectations?

• 2.5%

• 2.0%

• 1.6%

• 1.0%

If inflation metrics continue to decline, what might the Fed consider in December 2019?

• Increasing inflation targets

• Maintaining current rates

• A rate hike

• A third rate cut

How might a 25 basis point cut by the Fed affect the U.S. dollar?

• It will have no impact on the dollar

• It will open the door for other central banks to cut rates

• It will strengthen the dollar

• It will significantly weaken the dollar

What is a key reason for the sustained demand for the U.S. dollar?

• Strong interest rate differentials

• High inflation in the U.S.

• U.S. trade surplus

• Weakness in the eurozone and China