MLIV Pulse: What Fed rate would cause a big jump in default rates?

The transcript discusses the market's anticipation of a slower pace of rate hikes, with expectations around 5% to 5.25%. The Fed's projections for the end of the hiking cycle have increased since September, with potential impacts on the market if rates exceed 5%. The need for the Fed to moderate its approach is highlighted, considering inflation driven by supply disruptions from COVID and the Ukraine war.

What is the Fed's expectation for the end of the current hiking cycle compared to September?

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What is the significance of the range 5 to 5 1/2 mentioned in the text?

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How does the market react to the potential rate cut mentioned in the text?

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What factors are contributing to the inflation mentioned in the text?

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What does the text suggest about the pace of hikes by the Fed?

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