There Is a Risk Fed Independence Gets Eroded Over Time, Says Quilvest's Parker

The transcript discusses the Federal Reserve's potential rate hikes and its independence amidst President Trump's influence. It suggests that while the Fed is likely to raise rates in September and December, the frequency of hikes in 2019 may be less than anticipated. The bond market's reaction is seen as a measure of Fed independence. Additionally, the transcript covers the dollar's performance, noting low volatility in major currencies but pressure on emerging markets. The dollar is expected to trade within a range before potentially reversing its strength in 2019.

What is the bond market's perspective on the Fed's rate hikes?

• The bond market expects no rate hikes.

• The bond market is indifferent to rate hikes.

• The bond market anticipates continued rate hikes.

• The bond market expects rate cuts.

How might President Trump's appointments to the Fed board affect its independence?

• They might align with Trump's views, risking independence.

• They will have no effect on Fed independence.

• They could strengthen Fed independence.

• They will ensure more rate hikes.

What is the expected reaction of the bond market if Fed independence is compromised?

• No reaction at all.

• A neutral reaction with stable prices.

• A positive reaction with increased investments.

• A negative reaction with potential sell-offs.

What has been the trend in FX market volatility, according to the transcript?

• Decreasing volatility in emerging markets.

• High volatility across all currencies.

• Low volatility, except in emerging markets.

• Increasing volatility in the dollar-euro pair.

What is the predicted trend for the dollar-euro exchange rate in the short term?

• Unpredictable fluctuations.

• Stable within a specific range.

• Significant decrease in value.

• Significant increase in value.