Citigroup Strategist Believes U.S. Yield Curve Steepens

Citigroup Strategist Believes U.S. Yield Curve Steepens

Assessment

Interactive Video

Business

University

Hard

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The video discusses the steepening of the US curve due to rising deficits and potential exogenous events. It analyzes the likelihood of Fed rate hikes, considering strong CPI data and the impact of a stronger dollar. The discussion also covers the implications of higher deficits and tax cuts under the Trump administration, predicting increased treasury supply. Finally, it explores potential errors in economic predictions, emphasizing the role of sustained inflation and consumer spending.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the primary reasons for the steepening of the US curve?

Lower interest rates

Stable economic growth

Higher deficits

Decreasing deficits

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many rate hikes are expected this year according to the analysis?

Two

Four

Three

One

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could be a consequence of the Fed being too aggressive with rate hikes?

Decreased consumer spending

Increased inflation

Stronger dollar

Weaker dollar

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential impact of the border tax adjustment if implemented?

Decrease in deficits

Some revenue offsets

No effect on revenue

Complete offset of tax cuts

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could cause the analysis to be incorrect regarding economic growth?

Lower inflation rates

Sustained momentum in inflation and spending

Decreased consumer spending

Reduced market optimism