Fed May Cut More Than Expected in 2025, JPMorgan's Misra Says

The transcript discusses the volatility in interest rates, focusing on the bond market's response to changes in yields. It explores market concerns about labor and potential Fed rate cuts, emphasizing the interaction between equity and bond markets. The discussion includes potential future scenarios for Fed rate hikes or cuts, considering factors like inflation and fiscal policy.

What is the primary focus of the discussion on bond yield volatility?

• The effect of international markets

• The implications of the deficit trajectory on term premiums

• The role of corporate bonds

• The impact of short-term bonds

How does the speaker describe the relationship between bond yields and equity markets?

• Bonds and stocks always move in the same direction

• Bonds are irrelevant to equity markets

• Bonds act as a diversifier in a low-inflation environment

• Equity markets do not react to bond yields

What is the speaker's view on the potential for further Federal Reserve rate cuts?

• Rate cuts are irrelevant to market dynamics

• There is a possibility of more cuts due to disinflation forces

• The Fed will definitely not cut rates further

• The Fed has already cut rates enough

What scenario might lead the Federal Reserve to consider hiking rates?

• Pro-growth policies and higher inflation

• An increase in tariffs

• A decrease in fiscal spending

• A stable labor market

What does the speaker suggest about the Federal Reserve's approach to policy risks?

• The Fed is focused solely on inflation

• The Fed ignores policy risks

• The Fed is cautious and nervous about policy risks

• The Fed is aggressive and takes bold steps