InvestSMART's Lucas Discusses Fed Policy, U.S. Economy, Stocks

The video discusses Morgan Stanley's forecast of two Fed rate hikes in 2019 and the potential shift to a more dovish path. It examines the impact of Fed policy on emerging markets and the U.S. economy, highlighting the possibility of slower growth and market repricing. The discussion also covers the Fed's monetary policy outlook, including potential rate rises and economic implications, and concludes with an analysis of market conditions and expectations for 2019.

What is Morgan Stanley's expectation for the Federal Reserve's actions in 2019?

• No rate hikes

• Two rate hikes

• A rate cut

• Four rate hikes

How does the Federal Reserve's dot plot influence market expectations?

• It indicates potential interest rate changes

• It forecasts inflation rates

• It shows unemployment rates

• It predicts stock market trends

What change has been made to the Federal Reserve's press conference schedule?

• Press conferences will be held every month

• Press conferences will be held only in December

• Press conferences will be held annually

• Press conferences will be held bi-annually

What is the market's expectation for U.S. economic growth in 2019?

• Rapid growth

• Moderate growth

• Slowing growth

• Recession

What is the expected return on the S&P and Dow for the next year?

• Negative returns

• High double-digit returns

• No returns

• High single-digit to low double-digit returns