Fed Will Be Punched in Face by Inflation: JPMorgan's Michele

The transcript discusses a shift in economic predictions from a 10-year to a 5-year timeline for closing the output gap, influenced by strong policy responses from the Treasury and the Fed. It highlights China's successful economic recovery as a potential model for the West. The conversation also covers market expectations, particularly regarding treasury yields and inflation, and anticipates challenges the Fed may face in managing growth and inflationary pressures.

What was the initial prediction for the time it would take to close the output gap?

• 20 years

• 15 years

• 5 years

• 10 years

Which country's economic recovery is considered a potential blueprint for the Western world?

• Brazil

• Russia

• China

• India

What aspect of China's economy is highlighted as a sign of recovery?

• Manufacturing output

• Domestic air travel

• Export growth

• Retail sales

What is the expected range for the 10-year treasury yields according to the market?

• 0.5% to 1%

• 1.5% to 2%

• 1% to 1.5%

• 1.25% to 1.5%

What challenge does the Fed face in the context of a vaccine-led global reopening?

• Handling inflationary pressures

• Controlling unemployment

• Reducing interest rates

• Managing deflation