Shepherdson: Fed at 2% Next Year on Five Rate Hikes

The transcript discusses the anticipated rise in inflation rates due to energy price changes and the potential impact of the Trump administration's policies. It highlights the debate on whether to allow inflation to overshoot targets and the implications for economic policy. The discussion also covers expected interest rate hikes and their potential to trigger a recession, emphasizing the need for careful policy management.

What is the main concern of the Federal Reserve regarding inflation in the coming months?

• Deflationary pressures

• Decreasing energy prices

• Rising inflation expectations

• Stable inflation rates

What is the potential risk if inflation overshoots its target significantly?

• It will lead to deflation

• It will stabilize without any intervention

• It may require significant policy actions

• It will have no impact on the economy

What is expected to happen to US interest rates by the end of next year?

• They will be near 2%

• They will remain unchanged

• They will decrease significantly

• They will exceed 5%

What could potentially trigger a recession in the US after an initial economic boom?

• An increase in unemployment rates

• A sudden drop in consumer spending

• The Federal Reserve's response to inflation

• A decrease in fiscal stimulus

What is the stance of Steve Major from HSBC regarding future interest rates?

• Interest rates will rise rapidly

• Interest rates will remain low for a longer period

• Interest rates will decrease

• Interest rates will fluctuate unpredictably