AMP's Oliver Sees 4 to 5 Fed Rate Hikes in 2018

The video discusses the baseline scenario for inflation and its impact on asset allocation, predicting that US inflation will rise faster than the Federal Reserve anticipates, leading to multiple interest rate hikes. It examines US inflation expectations, the outlook for US 10-year paper, and the potential impact on equity markets. The discussion highlights the ongoing adjustment to higher inflation and interest rates, with a focus on the US economy's strength and its effect on market volatility.

What is the predicted number of interest rate hikes by the Federal Reserve this year according to the baseline scenario?

• Two times

• Four times

• Three times

• Six times

What is the expected change in core CPI from December to January?

• Increase from 1.6% to 1.7%

• Increase from 1.7% to 1.8%

• Decrease from 1.8% to 1.7%

• Remain constant at 1.8%

What is the anticipated trend for US 10-year yields by the end of the year?

• Remain constant at 2.85%

• Increase to 3% or higher

• Decrease to 2%

• Fluctuate around 2.5%

How might a rapid increase in yields affect equity markets?

• It will have no impact

• It will boost equity markets

• It will pose a problem for equity markets

• It will stabilize equity markets

What factor could offset the negative impact of rising yields on share markets?

• A weakening US economy

• Strengthening earnings

• A decrease in inflation

• A recession on the horizon