Fed's Balancing Act: Rate Hike and Global Economy

The transcript discusses the potential for a rate hike by the Fed and its implications on the US and global economies. It explores the impact of such a hike on credit markets, the role of monetary versus fiscal policy, and the effects of foreign investment and currency fluctuations. The discussion also covers the strength of the dollar and its influence on fixed income markets, highlighting opportunities in hedged global bonds.

What is the main concern regarding a potential rate hike in 2016?

• The impact on the US housing market

• The global economy's ability to cope

• The effect on US employment rates

• The influence on technological innovation

What is the criticism mentioned about monetary policy?

• It is too focused on inflation

• It is not transparent enough

• It cannot do everything alone

• It is too aggressive

How are negative interest rates affecting global bond markets?

• They are reducing investor interest

• They are making them more predictable

• They are turning them upside down

• They are stabilizing them

What opportunity does the negative interest rate environment present for US investors?

• Buying real estate abroad

• Investing in cryptocurrency

• Hedging foreign bonds for attractive returns

• Investing in domestic stocks

What is the Fed's challenge in managing the US economy?

• Reducing inflation to zero

• Increasing employment rates

• Encouraging technological innovation

• Balancing policy tightening without derailing the economy