Capricorn CIO Says 2019 Has Potential to Be `Incredibly Negative' for Dollar

The video discusses the complexities of US interest rates, fiscal stimulus, and the Fed's policy decisions. It highlights the potential for a yield inversion and the strength of the US economy amidst global growth. The discussion also covers the impact of fiscal stimulus, tax cuts, and the role of the FOMC in managing economic tensions and policy pressures. The video concludes with insights into the potential challenges for the US dollar and the economy in the coming year.

What are the two main competing factors affecting US interest rates discussed in the video?

• Federal Reserve's interest rate hikes and US fiscal stimulus

• US unemployment rates and global oil prices

• US dollar strength and European economic policies

• Asian market trends and US trade policies

What economic event is the yield curve known for predicting?

• Currency devaluation

• Inflation spikes

• Stock market crashes

• Recessions

What could potentially enhance the US's leadership in global growth according to the video?

• Tax cuts and fiscal stimulus

• Increased exports to Asia

• Higher interest rates

• Stronger European economies

What is the potential impact of fiscal stimulus and borrowing at 5% of GDP on US interest payments?

• Decrease by $100 billion

• Increase by $200 billion

• Decrease by $50 billion

• Remain unchanged

What is the main challenge the FOMC faces regarding interest rates as discussed in the video?

• Reducing unemployment rates

• Managing international trade agreements

• Balancing inflation control with economic growth

• Increasing foreign investments