Kapstream Capital's Goldman Sees 'Zero to One' Fed Hike in 2019

The video discusses the Federal Reserve's potential rate hikes in 2019, emphasizing that decisions will be data-dependent. It highlights the lack of significant inflation and tempered market expectations. The discussion shifts to market volatility, the impact of wage gains on inflation, and the outlook for equity markets. The speaker notes that while corporate profitability remains strong, central banks are likely to keep interest rates low, creating a favorable environment for equities.

What is the primary reason for the tempered expectations of Fed rate hikes in 2019?

• High inflation rates

• Strong economic growth

• Low market inflation expectations

• Increased unemployment

What is considered the main driver of inflation expectations in the US?

• Interest rates

• Wage gains

• Consumer spending

• Government policies

What structural change has affected the bargaining power of workers in the developed world?

• Increased automation

• Stronger labor unions

• Globalization

• Higher education levels

What is the current trend in the forward PE for the S&P 500 according to the video?

• Highest level since 2016

• Fluctuating since 2016

• Stable since 2016

• Lowest level since 2016

What is the expected role of central banks in the global economy according to the video?

• Raising interest rates

• Lowering interest rates

• Maintaining low interest rates

• Increasing inflation