Bond King Bill Gross: December Rate Hike a 'Slam Dunk'

The transcript discusses potential exogenous shocks to the Federal Reserve, focusing on global finance leverage and the impact of a strong dollar on emerging markets. It also covers predictions for interest rate hikes, market expectations, and the Fed's conservative approach under Janet Yellen, considering economic challenges and structural headwinds.

What is a potential consequence of a strong dollar for emerging market countries?

• Improved trade balances

• Increased export opportunities

• Higher debt servicing costs

• Lower inflation rates

How does a strong dollar create economic imbalances?

• By reducing global trade

• By stabilizing emerging markets

• By increasing inflation

• By affecting trade positions and hedge manager strategies

What is the expected number of rate hikes in 2017 according to investor expectations?

• One or two

• Zero

• Three or four

• More than four

What is the main challenge for the Federal Reserve when increasing interest rates?

• Balancing high leverage and structural headwinds

• Decreasing the value of the dollar

• Reducing inflation

• Increasing employment

What is the likelihood of a rate increase in December according to the discussion?

• Impossible

• Unlikely

• Possible but not certain

• Highly likely