Is the Fed Prepared to Overshoot Its Targets?

The transcript discusses the Federal Reserve's strategy to allow economic indicators like inflation to overshoot targets temporarily. It explains the concept of overshoot, compares it to past instances, and evaluates current inflation trends. The discussion shifts to market risks, highlighting HSBC's warning of a potential US stock market fall due to political risks. The speaker suggests reducing equity exposure and maintaining hedges. The impact of upcoming elections on market volatility is also analyzed, with a focus on the need for strategic adjustments to manage potential surprises.

What risks are associated with the upcoming elections as mentioned in the text?

What is the speaker's perspective on the volatility in the market?