What's Behind the Disconnect Between Stocks, Bonds?

The video discusses the Federal Reserve's shift in focus, introducing a 'third mandate' that considers global factors like the dollar. It explores the Fed's dovish stance despite a strong US economy, emphasizing the importance of global factors. The discussion covers market reactions, the Fed's low rate strategy, and the impact on equities. It also analyzes term premiums and global bond yields, highlighting the Fed's preference to let the economy run hot to avoid deflation. Finally, it presents global perspectives, particularly from Asia, on the Fed's actions and their implications.

What is the proposed third mandate of the Federal Reserve discussed in the video?

• Technological advancements

• Cryptocurrency regulation

• Global factors like the dollar

• Environmental sustainability

How does the Fed's dovish stance affect the market according to the video?

• It results in increased unemployment

• It allows equities and risky assets to perform well

• It causes a decline in stock prices

• It leads to higher interest rates

What is the Fed's communication strategy compared to during the QE period?

• They are using verbal guidance instead of QE

• They are focusing solely on domestic issues

• They are cutting rates significantly

• They are implementing more QE

What is the relationship between global bond yields and term premium discussed in the video?

• Lower global bond yields decrease term premium

• Global bond yields have no effect on term premium

• Term premium is solely determined by domestic inflation

• Higher global bond yields increase term premium

How do Asian investors perceive the Fed's actions according to the video?

• They believe the US is immune to global economic conditions

• They expect the Fed to increase interest rates rapidly

• They are not challenging the Fed's decisions

• They are surprised by the Fed's focus on the US economy