BofA's Cabana Says Rates Curve Is Challenging the Market

Mark Cabana from Bank of America discusses the Fed's approach to interest rates, highlighting its humility and nimbleness in response to economic data. The rates market is pricing in multiple rate hikes, challenging the Fed to respond. If financial conditions allow, the Fed may follow the market's lead, potentially resulting in six or seven hikes this year. The discussion also touches on the possibility of a 50 basis point hike in March, depending on market conditions.

What are the two characteristics of the Fed mentioned by Mark Cabana?

• Nimble and cautious

• Humble and nimble

• Humble and aggressive

• Cautious and aggressive

What is the current number of rate hikes being priced in by the market?

• Five to six

• Two to three

• Three to four

• Four and a half to five

What is the market testing according to Mark Cabana?

• Inflation rates

• Stock market stability

• Financial conditions

• The Fed's patience

What is the potential rate hike discussed for March?

• 50 basis points

• 75 basis points

• 25 basis points

• 100 basis points

What is the recommended strategy regarding the front end of the curve?

• Increase investments

• Neutral position

• Stay underweight

• Stay overweight