Fed Targeting Vs. Base Metals: Battle of the Charts

The video features a discussion on economic trends, focusing on the Fed's 2% inflation target and price level targeting. Omar Sharif presents a chart showing the core PCE deflator's performance over 20 years, highlighting the Fed's misses. Guy Johnson analyzes the US 10-year yields and their divergence from metals, discussing potential market opportunities and risks, including the China factor and trade concerns.

What is the main issue with the Fed's 2% inflation target according to Omar Sharif?

• The Fed has consistently exceeded the target.

• The target is not recognized internationally.

• The Fed has been missing the target for two decades.

• The target is too high for current economic conditions.

What does price level targeting imply for the Federal Reserve?

• The Fed should abandon inflation targets altogether.

• The Fed should focus solely on employment rates.

• The Fed should aim for a fixed inflation rate every year.

• The Fed should aim for 2% inflation on average over the medium term.

What does Guy Johnson suggest about the relationship between US 10-year yields and base metals?

• Base metals have been unaffected by yield changes.

• Yields have no impact on base metals.

• They have been closely tracking each other.

• They have been moving in opposite directions.

What factor does Guy Johnson mention that could influence the movement of yields?

• The US unemployment rate

• The twin deficit and trade story

• The European Central Bank's policies

• The price of crude oil

Who was acknowledged as the first celebrity battler in the Battle of the Charts?

• Bonnie

• The Federal Reserve

• Omar Sharif

• Guy Johnson