Fed to Initiate Tapering Discussion, JPMorgan's Hui Says

The transcript discusses the current market sentiment regarding inflation and the Federal Reserve's stance on it being transitory. It explores the potential impact of Fed policies on the dollar and yields, with a focus on tapering and normalization. The discussion includes forecasts for major currencies like the dollar, euro, and renminbi, highlighting the effects of policy divergence between central banks. The overall sentiment is that the dollar may strengthen, especially against low-yielding currencies, as the Fed becomes more explicit about tapering plans.

What is the Federal Reserve's current stance on inflation?

• They see it as transitory.

• They have already taken action.

• They believe it is permanent.

• They are ignoring it.

What is the main uncertainty regarding the Federal Reserve's future actions?

• Whether they will stop all monetary policies.

• Whether they will decrease interest rates.

• Whether they will start tapering.

• Whether they will increase interest rates.

How does the market view Chair Powell's potential comments on tapering?

• As dovish.

• As hawkish.

• As indifferent.

• As irrelevant.

What is the expected impact of rising US real yields on emerging market currencies?

• They will outperform the dollar.

• They will remain stable.

• They will face headwinds.

• They will strengthen.

What is the expected policy divergence between the Fed and the ECB?

• Both will end QE.

• Both will expand QE.

• The ECB will end QE while the Fed expands it.

• The Fed will end QE while the ECB expands it.