MLIV Pulse: What Fed rate would cause a big jump in default rates?

The transcript discusses the market's anticipation of a slower pace of rate hikes, with expectations around 5% to 5.25%. The Fed's projections for the end of the hiking cycle have increased since September, with potential impacts on the market if rates exceed 5%. The need for the Fed to moderate its approach is highlighted, considering inflation driven by supply disruptions from COVID and the Ukraine war.

What is the Federal Reserve's target range for interest rates as discussed in the video?

• 6 to 6.5%

• 4 to 4.5%

• 5 to 5.25%

• 5.5 to 6%

How does the market view the possibility of a rate cut?

• The market is confused about it.

• The market is ignoring it.

• The market is considering it.

• The market is certain about it.

What has changed in the Federal Reserve's expectations for the end of the hiking cycle?

• Expectations have remained the same.

• Expectations have increased.

• Expectations have been eliminated.

• Expectations have decreased.

What factors are contributing to inflation according to the video?

• Higher taxes

• Supply-side disruptions

• Lower interest rates

• Increased consumer spending

What is the Federal Reserve's response to the economic slowdown?

• Increasing the pace of rate hikes

• Maintaining the current pace of rate hikes

• Moderating the pace of rate hikes

• Eliminating rate hikes altogether