Door Is Open to Two 75 Bps Fed Hikes: JPMorgan's Michele

The video discusses the Federal Reserve's recent decision to implement a 75 basis point rate hike and the subsequent market reactions. Various banks, including Goldman Sachs and JP Morgan, predict further hikes in the coming months. The discussion highlights the Fed's strategy to front-load rate hikes, similar to 1994, aiming for a soft landing. The video also examines Wall Street's perspective and the Fed's infamous dot plot, suggesting a potential Fed funds rate of 3.5% to 4% by year-end.

What was the Federal Reserve's recent decision regarding interest rates?

• To eliminate interest rates

• To increase rates by 75 basis points

• To maintain current rates

• To decrease rates by 75 basis points

Which financial institution predicted consecutive 75 basis point hikes in June and July?

• Deutsche Bank

• Wells Fargo

• JP Morgan

• Goldman Sachs

What is the expected funds rate range after the predicted hikes by Goldman Sachs?

• 1.5% to 2%

• 2.25% to 2.5%

• 4% to 4.5%

• 3% to 3.5%

What historical year does the speaker compare the Fed's current strategy to?

• 1987

• 2008

• 1994

• 2001

What is the anticipated Fed funds rate range by year-end according to market pricing?

• 5% to 5.5%

• 2% to 2.5%

• 3.5% to 3.75%

• 4% to 4.5%