Deutsche Bank's Slok Says Fed Isn't Looking at Inflation

The video discusses the Federal Reserve's strategy for unwinding its balance sheet, focusing on the need for high interest rates and quantitative easing as preparation for potential future recessions. It highlights the current economic indicators, suggesting that the economy is still mid-cycle, with a low probability of recession in the next 12 months. The Fed aims to normalize conditions in a favorable market environment, ensuring readiness for all scenarios.

Discuss the implications of having high interest rates and more quantitative easing (QE) in preparation for a potential recession.

What are the indicators that suggest we are still in the mid-cycle of the economy?