U.S. Rates Are Underpricing Hikes in 2019, Schroders' Hornby Says

The video discusses the Federal Open Market Committee's (FOMC) communication strategy and its impact on market perceptions. It highlights the balance sheet's role in market liquidity and the concerns surrounding it. The discussion also covers different types of liquidity and their effects on risk assets. Finally, the video analyzes the yield curve as an economic indicator, exploring its implications for inflation and economic activity.

What is the significance of liquidity in the context of the balance sheet and market reactions?

How does the speaker view the relationship between the Fed's actions and market sentiment?

What implications does a flat yield curve have for investors according to the discussion?