Fed Will Be Compelled to Tighten One Last Time, Says Mizuho’s Chatwell

The transcript discusses the Federal Open Market Committee's (FOMC) dovish stance in March, highlighting a pause in rate hikes. It examines the economic rebound post-shutdown, improved financial conditions, and the potential for the Fed to tighten once more due to strong data. The discussion includes interest rate expectations, market reactions, and the possibility of a recession in 2020 due to corporate deleveraging and the end of the hiking cycle.

What is the Federal Reserve's stance in the March FOMC meeting according to the transcript?

• Aggressive tightening

• Full on hawkish mode

• Full on dovish mode

• Neutral stance

What economic indicator is mentioned as a reason for the Federal Reserve to consider tightening again?

• Stock market performance

• Unemployment rate

• Inflation rate

• Wage acceleration

What is not priced into the market according to the transcript?

• A recession in 2020

• A rate cut

• A rate hike in June

• A balance sheet expansion

What is expected to happen to the yield curve as the Federal Reserve nears the end of its hiking cycle?

• Flattening

• Inversion

• Steepening

• No change

What is the predicted economic outcome for 2020 due to corporate deleveraging?

• Deflation

• Recession

• Stagnation

• Economic boom