The Bar Is High for the Fed to Cut From Here | Markets in 3 Minutes

The video discusses the implications of recent economic data on the Federal Reserve's rate decisions, highlighting that the current core PCE does not justify rate cuts. It contrasts the Fed's stance with the European Central Bank's (ECB) projected rate cuts, suggesting that markets may be mispricing the ECB's actions. The discussion also touches on the potential impact of these central bank decisions on currency markets, particularly the dollar, euro, and yen.

What is the core PCE rate that the Fed has penciled in for 2025?

• 2.5%

• 3.0%

• 1.5%

• 2.8%

How many rate cuts did the markets expect from the ECB at the end of 2023?

• 7

• 4

• 5

• 6

According to ECB officials, what is the range for the neutral rate?

• 1.5% to 2.0%

• 1.0% to 1.5%

• 2.0% to 2.5%

• 2.5% to 3.0%

What is the expected impact on the euro if the ECB cuts rates?

• The euro will remain stable

• The euro will fluctuate unpredictably

• The euro will weaken

• The euro will strengthen

Which currency is mentioned as being on the back foot?

• Pound

• Euro

• Yen

• Dollar