UBS: US Faces Risk Of Later, Deeper Recession

The video discusses the current state of inflation and the Federal Reserve's approach to managing it. It highlights the challenges in achieving the Fed's inflation target and the implications for economic momentum and the labor market. The video also covers asset allocation strategies, particularly the 60/40 portfolio, and the undervaluation of US bonds. Additionally, it examines potential changes in the Bank of Japan's monetary policy and the impact on the Japanese yen. Finally, it advises on maintaining a defensive investment strategy in equities, given the ongoing rate hikes by the Federal Reserve.

What is the current target inflation rate set by the Federal Reserve?

What are the implications of Larry Summers' tweet regarding the PCE numbers?

How does the labor market serve as an indicator for inflation according to the text?

What is the expected trend for core inflation in the upcoming quarters?

How does the current valuation of the US equities market compare to historical averages?

What changes in monetary policy leadership at the Bank of Japan are anticipated?

What factors are contributing to the potential shift in the Bank of Japan's yield curve control strategy?