Morgan Stanley's Zentner Expects a December Rate Hike

The transcript discusses the market's reaction to potential rate increases, focusing on the probability of a December hike. It highlights the lack of mention of monetary policy in a recent speech, leading to uncertainty among traders. The discussion covers inflation trends and economic conditions, suggesting that while the market is uncertain, a December rate hike is expected if conditions improve.

What was the market's reaction to the speech regarding near-term monetary policy?

• Yields moved lower

• Yields moved higher

• The probability of a December hike increased

• Equities fell sharply

What percentage of traders believe there will be a rate hike in December?

• About one in five

• About one in two

• About one in three

• About one in four

What is the expected trend of inflation before the December meeting?

• It will remain stable

• It will worsen before improving

• It will improve steadily

• It will worsen continuously

What is the expected probability range for a December rate hike as the meeting approaches?

• 20 to 30%

• 30 to 40%

• 40 to 50%

• 10 to 20%

What economic conditions are expected to support a rate hike in December?

• Low growth and high inflation

• Stagnant growth and rising unemployment

• High unemployment and tight financial conditions

• Growth and unemployment at desired levels with easy financial conditions