Credit Suisse Sees the Fed Guiding Market Towards Higher Rates

The video discusses recent market sensitivity and repricing, influenced by Powell's unexpected hawkish stance. The Fed's guidance suggests more interest rate hikes, impacting asset classes and market curves. Inflation risk and policy uncertainty are also highlighted, with the Fed guiding towards higher real rates.

What was the market's initial reaction to Powell's unexpected hawkish stance?

• The market saw an increase in asset prices.

• The market saw a decrease in asset prices.

• The market became more volatile.

• The market remained stable.

How did the market adjust to the Fed's guidance on rate hikes?

• By increasing long-term investments.

• By reducing short-term investments.

• By repricing assets and adjusting the yield curve.

• By maintaining the current investment strategy.

What was a significant change observed in the yield curve?

• A reversal of the curve.

• A steepening of the curve.

• A flattening of the curve.

• No change in the curve.

What is the market's expectation regarding the terminal Fed funds rate?

• It will remain the same.

• It will decrease.

• It will increase.

• It will fluctuate unpredictably.

What is the market's concern related to inflation risk?

• Inflation risk is expected to decrease.

• Inflation risk is expected to remain stable.

• Inflation risk is expected to increase.

• Inflation risk is not a concern.