Inflation: The Make-or-Break Trade on Wall Street

The video discusses the economic impact of market crashes in the 1980s, current interest rates, and the Federal Reserve's stance on inflation. It highlights the challenges faced by Wall Street strategists in making accurate market predictions and examines the varying forecasts for the S&P 500. The Fed's new framework for inflation targeting is also explored.

What was the impact of the economic strategies in the 1980s on the market?

• The market experienced a significant boom.

• The market remained stable.

• The market saw minor fluctuations.

• The market crashed and the economy halted.

What is the current terminal rate that is priced in, according to the discussion?

• 1.75%

• 20%

• 10%

• 5%

What new framework did the Federal Reserve introduce before the pandemic?

• Inflation reduction strategy

• Zero inflation policy

• Flexible average inflation targeting

• Fixed inflation targeting

What is the range of year-end targets for the S&P 500 according to Bloomberg's forecasters?

• 4000 to 5000

• 4800 to 5800

• 3000 to 4000

• 3800 to 4800

What is the potential spread between the highest and lowest S&P 500 forecasts?

• 2000 points

• 500 points

• 1500 points

• 1000 points