U.S. Fiscal Stimulus Coming at Wrong Time, ANZ's Yetsenga Says

The video discusses the Federal Reserve's approach to the yield curve and its potential inversion due to ongoing rate hikes. It highlights the impact of fiscal stimulus, such as tax cuts, on the US economy and the complications it introduces for the Fed. The discussion also covers future projections for US GDP growth, suggesting a slowdown by 2020, and the broader implications for the global economy. The video concludes with an analysis of the Fed's policy stance and its effects on emerging markets and global trade dynamics.

What is the primary concern regarding the yield curve mentioned in the first section?

• It could invert due to Fed's actions.

• It may lead to an economic boom.

• It is not being monitored closely enough.

• It is irrelevant to current policy settings.

How does the fiscal stimulus affect the US economy according to the second section?

• It has no impact on trade relations.

• It simplifies the Fed's job.

• It strengthens the public balance sheet.

• It complicates monetary policy and deteriorates the balance sheet.

What is the expected impact of the fiscal stimulus on US GDP growth by 2020?

• GDP growth will not be affected.

• GDP growth will remain stable at 2%.

• GDP growth will be well below 2%.

• GDP growth will exceed 3%.

What is the stance of the Fed on tightening policy as discussed in the third section?

• The Fed should continue with planned hikes.

• The Fed should lower interest rates.

• The Fed should become more aggressive.

• The Fed should halt all rate hikes.

What challenges are emerging markets facing according to the third section?

• Increased global growth.

• Hostile conditions due to Fed's tightening.

• Stable trade conditions.

• Decreasing liquidity.