Fed Will 'Talk About Talking About Tapering': BofA's Cabana

The video discusses the Federal Reserve's focus on tapering and administered rates, highlighting the anticipation of discussions around tapering conditions. It analyzes the 2023 dots and market expectations for rate hikes, noting that the market is already pricing in potential hikes. The Fed's current stance is to keep rates on hold, waiting for data to necessitate changes. The market is seen as ready for preliminary tapering discussions, with a significant portion of clients expecting tapering to start in the first quarter of next year.

What is the Federal Reserve expected to discuss regarding tapering?

• Increase in tapering pace

• Complete halt of tapering

• Conditions necessary before tapering

• Immediate start of tapering

How many rate hikes is the market currently pricing in for 2023?

• No hikes

• Four hikes

• Two to three hikes

• One hike

What is the Fed's current stance on interest rates?

• Immediate rate increase

• Gradual rate decrease

• Complete rate freeze

• Rates are on hold

When do most clients anticipate the Fed will start the tapering process?

• Last quarter of this year

• First quarter of next year

• Mid next year

• End of next year

What is the Fed's current position on tapering?

• Tapering completed

• Tapering postponed indefinitely

• Not ready to taper yet

• Ready to taper immediately