Memani: Rates to Remain Low for Very Long Period

The transcript discusses the potential impact of Fed statements on market expectations, focusing on rate hikes and the dot plot. It analyzes the Fed funds target rate and its implications for the economy. The labor market's influence on rate rise outlook is examined, with a focus on Janet Yellen's preferred indicators. The bond market's reaction to global economic factors, including Brexit, is explored. Finally, investment opportunities in European markets are considered, highlighting equities and bonds.

What could align with market expectations to provide new information for the markets?

• A sudden increase in inflation

• An unexpected economic downturn

• The dot plot story aligning with market expectations

• A change in the Fed chair

What is Janet Yellen's preferred labor market indicator?

• Labor market conditions index

• Unemployment rate

• Consumer confidence index

• GDP growth rate

What might indicate a change in the outlook for potential rate rises?

• A rise in unemployment

• A decrease in inflation

• A decline in consumer spending

• Strong labor market conditions

What global factor is mentioned as influencing the US yield curve?

• Rising oil prices

• Global disinflation and deflation

• Increased consumer spending

• Technological advancements

What is the likelihood of a significant rally in European bond markets without Brexit?

• Moderate

• Very marginal

• Very high

• Certain