UBS's Donovan Says Debt Ceiling Weighs on Fed Rates

The video discusses the balance sheets of major banks as a percentage of GDP, highlighting the Swiss National Bank's significant size. It examines the impact of the debt ceiling on economic performance and inflation, noting the Federal Reserve's role in managing quantitative, monetary, and regulatory policies. The discussion also covers the challenges in defining normal interest rates and the evolving financial norms in a more cash-based society.

What is the significance of the debt ceiling in relation to economic performance?

How does the Federal Reserve's quantitative policy impact the economy?

What factors contribute to the determination of 'normal' interest rates?

In what ways has the U.S. become a more cash-based society since the crisis?

Why is it considered dangerous to define a specific goal for normal interest rates at this stage?