BlackRock's Boivin Sees 'Reasonable' Odds of Fed Hike

The transcript discusses market expectations regarding rate hikes, influenced by payroll and CPI data. It highlights the challenges of pausing rate hikes due to ongoing inflation pressures, drawing comparisons with Canada and Australia. The conversation emphasizes a shift from a structural easing bias to a tightening bias, suggesting that the Fed may not intervene to rescue the economy if it slows down. The outlook on inflation suggests it will remain above target for the foreseeable future, impacting risk assets and the equity market.

What was the unexpected outcome of the last meeting regarding rate changes?

• A complete overhaul of the economic policy

• An immediate rate hike

• An engineered pause in rate changes

• A decision to cut rates

Why does the speaker believe the Fed will not cut rates soon?

• Because the Fed has already cut rates significantly

• Because inflation is expected to decrease rapidly

• Due to a strong economic growth forecast

• Because the disconnect between expectations and reality is disappearing

What is the speaker's view on inflation reaching the target?

• It will likely reach the target in 2023

• It will probably not reach the target until after 2024

• It has already reached the target

• It will never reach the target

What is the fundamental difference in economic policy mentioned?

• A shift from a structural tightening bias to a structural easing bias

• A shift from a structural easing bias to a structural tightening bias

• A focus on immediate economic rescue

• A complete disregard for inflation pressures

What does the speaker suggest about the economy's ability to recover if it contracts?

• The economy will not contract at all

• The economy's contraction is part of the plan, and rescue efforts will not be immediate

• The economy will not need to contract

• The economy will recover quickly with government intervention