Fed Should Cut Rates at Next Three Meetings, Economist Swonk Says

The transcript discusses the market's anticipation of rate cuts, highlighting that the current cycle adjustment is not the start of a long series of cuts. It explores the potential for rate cuts in September, October, and December, which could reverse the 2018 Fed rate hikes. The discussion includes the impact of Brexit and trade wars on these forecasts. The Fed aims to counteract business hesitation and economic uncertainty, but faces challenges due to limited room for further rate cuts in a recession.

What is the market's expectation regarding the rate cut in September?

• A 25 basis point cut

• No change in rates

• A 50 basis point cut

• An increase in rates

What factors are contributing to the uncertainty in the market?

• Brexit and trade wars

• Inflation and unemployment

• Technological advancements

• Natural disasters

By the end of 2019, what will the Fed have achieved if additional rate cuts occur?

• Stabilized the stock market

• Reversed all 2018 rate hikes

• Increased interest rates

• Reduced inflation

Why does the Fed consider additional rate cuts necessary?

• To boost technological growth

• To reduce unemployment

• To increase inflation

• To counteract economic headwinds

What challenge does Chairman Powell highlight regarding rate cuts during a recession?

• Increased unemployment

• High inflation rates

• Limited room for economic stimulation

• Lack of public support