Fed Unlikely to Cut Rates This Year: Principal Global's West

The video discusses the current challenges in the credit market, noting that while a recession is not imminent, credit spreads are tight, suggesting a cautious approach with a focus on investment-grade assets. The speaker also addresses the outlook for monetary policy, indicating that the Fed is unlikely to cut rates in 2019 unless trade issues worsen significantly. The potential for growth in the second half of the year and the impact of trade resolutions on inflation and interest rates are also considered.

What is the current preference in the credit market according to the discussion?

• Cryptocurrencies

• Emerging market debt

• High-yield instruments

• Investment-grade instruments

What could lead to new opportunities in financial instruments in the second half of the year?

• An increase in inflation

• A quick resolution of trade issues

• A decrease in unemployment

• A rise in interest rates

What is the current stance of the Federal Reserve on interest rates for 2019?

• No change expected

• Uncertain about the decision

• Planning a rate increase

• Planning a rate cut

Which factor is NOT mentioned as influencing the Federal Reserve's decision on interest rates?

• Stock market performance

• Trade issues

• Unemployment levels

• Inflation rates

What might prompt the Federal Reserve to act on interest rates despite their current stance?

• A stronger dollar and growth tapering off

• A decrease in inflation

• An increase in unemployment

• A rise in global oil prices