Fed Won't Cut Rates Until 2024, Principal's Shah Says

The video discusses the Federal Reserve's policy stance amid economic recession and inflation concerns. It highlights the Fed's cautious approach due to historical lessons, expecting inflation to decrease slowly. Despite economic weakness, the Fed is likely to maintain restrictive policies until 2024, prioritizing inflation control over immediate economic relief.

What is the expected stance of the Fed's policy throughout 2023?

• To adopt a neutral stance

• To increase interest rates drastically

• To maintain restrictive measures

• To reduce interest rates significantly

Why does the market anticipate interest rate cuts despite the Fed's stance?

• Owing to a strong labor market

• Because of high inflation rates

• Because of a potential recession

• Due to expected economic growth

What historical lesson is influencing the Fed's current approach to inflation?

• The inflationary period of the 1970s

• The dot-com bubble of the early 2000s

• The financial crisis of 2008

• The economic boom of the 1990s

When is the Fed expected to provide relief according to the predictions?

• Mid 2023

• Late 2024

• Early 2024

• Late 2023

What is the Fed's main concern that prevents them from easing policies in 2023?

• Rising unemployment rates

• Potential housing market collapse

• Repeating past inflation mistakes

• Increasing economic growth