Fed Could Pivot and Potentially Cut Rates by 2H: Liang

The video discusses the expected downshift in rate hikes to 25 basis points due to decelerating CPI. It highlights the importance of data dependency and the Fed's hawkish tone, influenced by historical events like Arthur Burns' policies. Current economic indicators suggest recessionary trends, with shelter costs remaining high. The market's narrative contrasts with the Fed's, as they aim for a 5% terminal rate. Future projections include potential rate cuts due to rising unemployment and financial tightening. The Fed's move towards normalization and QT is also examined.

What is the expected change in the pace of interest rate hikes by the Federal Reserve?

• Increase by 75 basis points

• Increase by 50 basis points

• Decrease to 25 basis points

• Maintain the current rate

Which historical figure is mentioned in relation to the Fed's policy decisions?

• Ben Bernanke

• Paul Volcker

• Alan Greenspan

• Arthur Burns

What economic indicator is highlighted as being in recessionary territory?

• Consumer Confidence Index

• Index of Leading Economic Indicators

• Unemployment Rate

• Stock Market Index

What is the market's perception of the Fed's 'higher for longer' narrative?

• Indifferent

• Unaware

• Skeptical

• Fully supportive

What is the predicted terminal rate the Fed aims to achieve?

• 5%

• 4%

• 6%

• 3%