U.S. Rates Are Going to Go Aggressively Lower: Rabobank’s Foley

The video discusses financial conditions, market expectations, and the potential for interest rates to reach zero by June. It highlights the risk of recession in the US, Eurozone, and Japan, exacerbated by the coronavirus. The discussion also covers the role of fiscal policy in mitigating the economic impact of the crisis.

What is the market's expectation regarding the Fed funds rate by June?

• It will reach zero.

• It will increase by 50 basis points.

• It will remain unchanged.

• It will decrease by 10 basis points.

Which regions are mentioned as being at risk of recession?

• Australia, Canada, and Mexico

• Russia, South Africa, and Argentina

• China, India, and Brazil

• US, Eurozone, and Japan

How is the coronavirus expected to impact economies?

• By increasing tourism

• By boosting exports

• By disrupting supply chains and demand

• By stabilizing currency values

What is the expected trend for interest rates in response to the crisis?

• They will increase slightly.

• They will fluctuate unpredictably.

• They will remain stable.

• They will decrease aggressively.

What role is fiscal policy expected to play during the crisis?

• To limit the economic impact

• To reduce government spending

• To increase inflation

• To enhance trade barriers