Cornerstone's Perli Sees Markets Pricing in 4 Fed Hikes

The video discusses the Federal Reserve's rate hike path, with a focus on market expectations and reactions to inflation data. Despite recent CPI figures, the base case remains three rate hikes, though the market has priced in a possibility of four. The bond market is wary of inflation and the Fed's response. The discussion also covers market psychology, fiscal stimulus, and the disconnect between traditional economic models and recent economic behavior, particularly regarding the Phillips curve and labor market dynamics.

What is the current expectation for the number of rate hikes by the Fed this year?

What factors are causing the bond market to be nervous according to the discussion?

How has the market's perception of inflation changed over the past year?

What structural issues were previously blamed for inflation surprises?

What does the speaker suggest about the relationship between inflation and wages over the past 20 years?