Fed on the Way for 2 Hikes by End of Year, Says Vanguard's Wang

The video discusses the US Federal Reserve's policy and its impact on inflation and interest rates, predicting upward pressure on the US Treasury yield and dollar. It examines the yield curve as a potential indicator of economic downturns, noting its historical significance. The discussion shifts to China's currency policy, highlighting the yuan's depreciation due to US rate hikes and China's monetary stimulus. The video emphasizes the importance of monitoring these economic indicators and the potential for market intervention if currency depreciation accelerates.

What is the expected impact of the US Federal Reserve's policy on the US Treasury yield and the US dollar?

• Upward pressure on the yield, downward on the dollar

• No impact on either

• Upward pressure on both

• Downward pressure on both

What structural factors are mentioned as influencing long-term Treasury yields?

• Stock market performance

• Government spending

• Long-term productivity and inflation expectations

• Short-term interest rates

What historical trend is associated with a flattening yield curve?

• Economic expansion

• Economic downturn or recession

• Increased inflation

• Stable economic growth

What is the significance of the yuan's reference rate being set weaker than the previous day?

• It has no significance

• It indicates a stronger yuan

• It indicates a stable yuan

• It suggests a weaker yuan

What risk is associated with rapid currency depreciation in China?

• Increased foreign investment

• Capital flight

• Higher inflation

• Economic growth