Daybreak Europe Show Open: Market Risks

The transcript discusses the market's need to adapt to potential Federal Reserve actions, including a possible 50 basis point hike or an intra-meeting move. James Bullard's comments highlight the importance of the Fed's nimbleness and the potential risks to credibility if an intra-meeting is called. The market is on edge, with a 30% chance of an intra-meeting hike after Bullard's speech. The discussion also touches on the role of bond and equity vigilantes in the current market environment.

What is the market trying to address according to the first section?

• A new fiscal policy

• A potential 50 basis point hike in March

• A decrease in interest rates

• An increase in stock prices

What does James Bullard suggest about the committee's past actions?

• They would have had a meeting immediately

• They preferred to wait and see

• They were always reactive

• They ignored market signals

What is a potential risk if the Fed calls an intra-meeting?

• Rise in stock prices

• Loss of market confidence

• Increase in inflation

• Decrease in employment

What percentage did the probability of an intra-meeting hike reach after Bullard's comments?

• 40%

• 30%

• 20%

• 10%

What is questioned about the Fed in the last section?

• Their decision to increase taxes

• Their resolve to make a pre-March move

• Their plan to reduce inflation

• Their ability to lower interest rates