Economist Rosenberg Sees Untested, Inexperienced Fed

The transcript discusses changes in the Federal Reserve's leadership, highlighting the loss of experienced members and the impact on monetary policy. It examines Janet Yellen's role in setting a hawkish tone and the market's response to the Fed's dovish attempts. The tendency of new central bankers to raise interest rates is explored, along with the presence of wage pressures as noted in the Fed's Beige Book. Barry Bannister provides insights on the market outlook, focusing on Treasury yields and their effect on corporate markets.

What is the main concern about the current Federal Reserve team?

• They have too much experience.

• They are untested and inexperienced.

• They are too dovish.

• They are too focused on inflation.

What role is Janet Yellen expected to play according to the discussion?

• To focus on inflation control.

• To increase market volatility.

• To set the stage for hawkish statements.

• To be dovish and cut rates.

What is a common action taken by new central bankers?

• Cutting interest rates.

• Raising interest rates.

• Maintaining the status quo.

• Focusing on wage pressures.

What is the expected trend for the S&P 500 according to the consensus?

• It will remain stable.

• It will go higher.

• It will fluctuate unpredictably.

• It will decrease significantly.

What could lead to a topping out of the market?

• A decrease in credit spreads.

• A rise in the yield on corporates beyond earnings growth.

• An increase in corporate earnings.

• A decrease in Treasury yields.