Fed Will Cut Rates Three Times and May Restart QE, Sri-Kumar Says

The video discusses a forecast from Goldman Sachs predicting a 1% yield on the 10-year bond, with expectations of two Federal Reserve rate cuts by June. The speaker believes the 10-year yield could drop below 1% and the 30-year yield to 1.5%, unprecedentedly low figures. The Fed's reaction to stock market changes is highlighted, with a history of pivoting from rate increases to cuts. The potential for quantitative easing to further lower yields is explored, questioning the Fed's role and the necessity of its actions. The discussion concludes with skepticism about the Fed's approach to economic stimulus.

What is the expected target for the 10-year yield according to the forecast discussed?

• Exactly 1.5%

• Below 1%

• Around 1.5%

• Above 2%

How did the Federal Reserve respond to the stock market correction in late 2018?

• By increasing interest rates

• By cutting interest rates

• By maintaining the same interest rates

• By stopping quantitative easing

What is one potential action the Fed might take to influence bond yields?

• Raise interest rates

• Sell government bonds

• Start quantitative easing

• Increase taxes

What is the critique mentioned about the Federal Reserve's approach to quantitative easing?

• It focuses too much on inflation

• It is too slow to implement

• It is unnecessary given market conditions

• It is too aggressive

What is the perceived function of the Federal Reserve according to the critique?

• To regulate banks

• To maintain employment levels

• To react to the stock market

• To control inflation