U.S. Inflation Isn’t Going Anywhere, Says StanChart’s Meskin

The video discusses the Federal Reserve's focus on growth and inflation, highlighting a shift in their reaction function due to market changes in the fourth quarter. It examines the outlook for growth and inflation, noting concerns about deflation. The discussion concludes with predictions about future market movements, suggesting a higher probability of a rate cut than a hike.

What was a significant factor in the shift of the Fed's reaction function?

• The global trade agreements

• The market tantrum in the fourth quarter

• The rise in oil prices

• The increase in housing market activity

Why is the Fed particularly concerned about deflation?

• Because it can increase unemployment

• Because it boosts consumer spending

• Because it can lead to a decrease in inflation expectations

• Because it leads to higher interest rates

What is the primary reason for the Fed's focus on inflation today?

• To boost economic growth

• To stabilize the housing market

• To prevent a significant rise in deflation expectations

• To increase consumer confidence

What is the current state of the 10-year yield according to the video?

• At its highest level in a decade

• Fluctuating unpredictably

• At its lowest level in more than a year

• Unchanged from the previous year

What is the market's expectation regarding the Fed's next move?

• An increase in quantitative easing

• A likely rate cut

• No change in rates

• A likely rate hike