Market to Focus on Risks in Fed’s Dot Plot, BofAML’s Cabana Says

The video discusses potential market surprises related to the Federal Reserve's actions, particularly focusing on interest rate changes. It highlights the high threshold for raising rates compared to cutting them and the importance of the dot plot in signaling Fed policy. The current policy is seen as stable, with future rate hikes anticipated in 2021 and 2022. The market is expected to focus on the distribution of risks as reflected in the dot plot.

What implications does a 'fed on hold' signal have for the markets?

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In what ways might the distribution of risks influence the Federal Reserve's policy decisions?

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