Srinivasan: Reasonable to Assume Two 2017 Fed Hikes

The video discusses the market rotation following Trump's election, focusing on the impact of bond yields and stock prices. It examines the effects of infrastructure spending, particularly in the US and China, and its implications for economic growth. The role of cheap money in supporting equities and the potential for a market correction are analyzed. Finally, the video explores predictions for interest rate hikes based on economic indicators like unemployment and GDP growth.

What is the effect of rising bond yields on consumer expenses?

• It makes borrowing cheaper.

• It increases the cost of borrowing.

• It has no effect on consumer expenses.

• It reduces the cost of living.

What is a major challenge associated with infrastructure projects?

• They always come in under budget.

• They are easy to fund.

• They can crowd out the real economy.

• They have no impact on economic growth.

What has been a significant factor in supporting the US stock market?

• High real earnings

• Government subsidies

• Strong consumer spending

• Cheap money

What is the current expectation for US interest rates in the near future?

• There will be significant rate cuts.

• They will remain unchanged.

• They will decrease slightly.

• There will be multiple rate hikes.

What economic indicator suggests a potential slowdown in the US economy?

• Decreasing GDP growth

• Movement in bond yields

• Rising unemployment

• Increasing inflation