Fed to Raise Rates in May, Then Hold: Strategist Mahajan

The transcript discusses the potential for one more rate hike by the Fed in May, with a 65% market probability. It explores the conditions needed for future rate cuts, such as significant inflation reduction or economic weakening. The bond and equity markets are potentially mispriced, leading to expected volatility. Signs of economic softness are emerging, indicating a mild recessionary environment, but also potential opportunities for recovery.

What is the expected terminal rate indicated by the Fed back in March?

What conditions need to be met for the Fed to signal rate cuts?

How does the speaker view the bond and equity markets in relation to rate hikes?

What signs of economic softening are mentioned in the text?

What is the speaker's perspective on the potential for volatility in the markets?