Fed 'Absolutely' Could Get to 6% Rates: Stifel's Piegza

The video discusses the dynamics of oversupply and inflation, highlighting how high inflation might solve itself on the supply side but not on the demand side due to labor market imbalances. It explores the Federal Reserve's role in managing inflation and interest rates, emphasizing the challenges of predicting inflation's sticky nature and the potential need for a higher terminal rate.

What is one potential outcome of high inflation according to Doctor Terry Weissman?

• It can lead to a decrease in food prices.

• It can solve high inflation itself.

• It can increase labor supply.

• It can stabilize the housing market.

What is a major concern for the Fed regarding high inflation?

• It can lead to a surplus in labor supply.

• It could result in a wage-price spiral.

• It might lead to a decrease in consumer spending.

• It may cause a drop in stock market prices.

What is the Fed's longstanding call for the terminal rate?

• 7%

• 6%

• 5%

• 4%

Why is the Fed cautious about signaling a higher terminal rate to the markets?

• They want to avoid causing panic among investors.

• They are unsure about the future of inflation.

• They are waiting for a change in government policy.

• They do not want to overpromise if inflation improves.

How has the Fed's forecast for inflation changed since March of last year?

• It has decreased by 100 basis points.

• It has remained the same.

• It has increased by 230 basis points.

• It has decreased by 50 basis points.