Fed Could Cut Three Times by Middle of Year, Says UBS’s Wraith

The transcript discusses the Federal Reserve's approach to inflation, emphasizing a more tolerant view towards achieving a 2% inflation rate. It highlights market reactions to this strategy, noting minimal movement in break-evens. The discussion also covers potential rate cuts by the Fed, with predictions of up to three cuts by mid-year, driven by expected softening in retail sales and rising jobless claims. Additionally, the transcript examines the Fed's repo response, arguing that it is not fueling the stock market, which is instead driven by low rates and a healthy economy.

What does the term 'compensation factor' refer to in the context of the Federal Reserve's actions?

How has the labor market been described in relation to the economy's performance over the last year?

What is the significance of the 2% inflation target mentioned in the text?

What are the potential risks mentioned that could affect the Federal Reserve's decisions?

How does the text describe the relationship between the Fed's repo response and the stock market?