Fed Won't Cut Rates Until Q1 Next Year, BNP's Tse Says

The video discusses the Federal Reserve's rate cut expectations, emphasizing that while no cuts are expected this year, market indicators suggest potential earlier cuts. It highlights the asymmetric nature of market reactions to economic data, where strong data may lead to a longer hiking cycle, but weak data could prompt more cuts. The discussion also covers the US yield curve, predicting significant steepening driven by various scenarios, including inflation risks and regional banking issues. The analysis suggests that the yield curve could benefit from both bullish and bearish market conditions.

What is the base case regarding the Federal Reserve's interest rate cuts for this year?

How does the recent CPI number affect market expectations for rate cuts?

What does the speaker suggest is required for the markets to price in a longer hiking cycle?

What are the two scenarios mentioned that could benefit the steepening trade in the yield curve?

What is the speaker's view on inflation and its impact on the Fed's actions?