UBS's Fiotakis Sees Fed Delivering Less Than Expected

The video discusses fiscal policy decision-making involving the administration and Congress, focusing on the Federal Reserve's expected rate hikes. It analyzes inflation trends, break-even rates, and the impact of quantitative easing and tapering on bond yields and inflation. The discussion highlights the uncertainty in financial markets and the challenges in achieving sustainable inflation above 2%.

What is the market's expectation for the number of interest rate hikes by the Federal Reserve this year?

• 3 hikes

• 2 hikes

• 1 hike

• 4 hikes

What is one of the reasons for the increase in break-even inflation rates?

• Stable oil prices

• Volatile oil prices

• Increase in oil prices

• Decrease in oil prices

What is the expected long-term trajectory for core inflation according to the discussion?

• Below 1%

• Above 3%

• Above 4%

• Around 2%

What does the term 'tapering' refer to in monetary policy?

• Increasing government spending

• Reducing the pace of asset purchases

• Lowering taxes

• Increasing interest rates

What is the current challenge in achieving sustainable inflation above 2%?

• Lack of fiscal relief

• Strong global economic growth

• Balance between disinflation and reflation

• High unemployment rates