UBS' Tan on Fed Policy, Rate Hikes, Yield Curve

The video discusses the anticipated rate hike by the Fed and its implications for the market, focusing on GDP growth, unemployment, and inflation forecasts. It also examines the yield curve, addressing concerns about potential inversion and its impact on the Fed's plans for 2018. The analysis suggests that the yield curve is unlikely to invert, with a 50 basis point spread expected to remain.

What is the expected change in the Federal Reserve's GDP growth forecast?

• A decrease in GDP growth

• A significant drop in GDP growth

• An increase in GDP growth

• No change in GDP growth

What could be the market's reaction if the median dot plot shifts to four hikes?

• The market could sell the dollar

• The market could invest in gold

• The market could remain neutral

• The market could buy the dollar

What is the main concern regarding the yield curve discussed in the video?

• The yield curve is expected to steepen significantly

• The yield curve might flatten but not invert

• The yield curve is expected to invert

• The yield curve will remain unchanged

According to the video, what is Morgan Stanley's stance on the yield curve?

• They believe the yield curve will steepen

• They anticipate the yield curve will invert

• They have no opinion on the yield curve

• They expect the yield curve to remain flat

What is the expected spread between the two-year and ten-year Treasury yields by the end of 2018?

• 100 basis points

• 75 basis points

• 50 basis points

• 25 basis points