Secular Trend in Inflation Is Upward, Says Richard Bernstein

The video discusses the hawkish risks at the upcoming FOMC meeting, with a likely 25 basis point hike and potential for a 50 basis point hike in the future. It examines market consensus on inflation and the Fed's position, highlighting the unprecedented gap between inflation and the Fed funds rate. The discussion suggests that the Fed is far behind in addressing inflation, and without aggressive action, the secular trend in inflation is expected to rise.

What is the expected outcome of the upcoming FOMC meeting?

• A rate cut is expected.

• A 75 basis point hike is expected.

• A 25 basis point hike is likely.

• No change in rates is anticipated.

How does the current relationship between inflation and the Fed funds rate compare historically?

• It is narrower than ever before.

• It is wider than it has ever been.

• It is about the same as usual.

• It is not relevant to current economic conditions.

What challenge does the Fed face in addressing inflation according to the discussion?

• The Fed is ahead of inflation.

• The Fed is indifferent to inflation.

• The Fed has already controlled inflation.

• The Fed is significantly behind inflation.

What might happen if the Fed does not take aggressive measures to control inflation?

• The secular trend in inflation may continue upward.

• Inflation will likely decrease.

• The economy will experience deflation.

• Interest rates will drop significantly.

What is the potential consequence of the Fed's cautious approach?

• A decrease in inflation rates.

• A rapid economic recovery.

• An upward trend in inflation.

• A stable economic environment.