Intellectus Partners Emons Sees Higher Real Wages

The video discusses the current economic climate, focusing on inflation, consumer resilience, and modest price increases. It highlights the impact of these factors on real income and retail sales, with GDP growth tracking at 3.5%. The discussion shifts to interest rate hikes, market expectations, and the potential for a yield curve inversion by next year. The market predicts the Fed funds rate to stabilize around 3.75% by late 2018, with less than 2% for the terminal rate, indicating the end of the current economic cycle.

What is the impact of modest price increases on consumers according to the discussion?

• It causes a decrease in consumer spending.

• It leads to higher real income.

• It results in lower real wages.

• It increases the pricing power in the economy.

How does the modest increase in inflation affect the GDP growth rate?

• It has no impact on GDP growth.

• It causes GDP growth to decline.

• It keeps GDP growth at a moderate level.

• It boosts GDP growth significantly.

What is the market's expectation for the Fed's interest rate hikes in 2018?

• The Fed will not hike rates at all.

• The Fed will hike rates once more.

• The Fed will decrease rates.

• The Fed will hike rates multiple times.

What does the market suggest about the Fed funds rate by late 2018 to early 2019?

• It will be around 3%.

• It will be around 2%.

• It will be around 3.75%.

• It will be around 1.5%.

What is the potential outcome of the yield curve by next year according to the discussion?

• It will become more volatile.

• It will steepen significantly.

• It will remain unchanged.

• It will flatten further and possibly invert.