Bunning: Market Wants to Believe the Higher Rates Story

The video discusses the Federal Reserve's influence on the market, particularly in terms of interest rates and the US economy's ability to sustain higher rates and a stronger dollar. It highlights the role of politics in driving market trends, especially in the bond market and foreign exchange. The discussion also covers predictions for the US dollar and yield trends, emphasizing the impact of political events like the Trump administration's policies.

What is the market's current belief regarding interest rates, as discussed in the first section?

• The market believes rates will decrease.

• The market is uncertain about rate changes.

• The market is pricing in a 100% rate hike.

• The market expects rates to remain stable.

What challenge does the US economy face with higher interest rates and a stronger dollar?

• Increased inflation

• Higher unemployment

• Stalling recovery

• Decreased exports

According to the third section, what is now driving the foreign exchange markets?

• Capital flows

• Politics

• Interest rates

• Trade balances

How has the bond market's reaction been affected by central bank policies?

• It has been unaffected.

• It has become more predictable.

• It has lost its traditional anchor.

• It has become more volatile.

What is the expected trend for the US dollar by the end of 2017?

• It will remain stable.

• It will significantly weaken.

• It will strengthen.

• It will slightly weaken.