Markets Preview: Brexit Vote and Yellen Testimony

The transcript discusses the potential outcomes of the Brexit vote and its implications for the US economy, particularly in relation to the Federal Reserve's interest rate decisions. It covers expectations for Janet Yellen's testimony before Congress, the Fed's cautious approach to rate normalization, and the impact of Fed policy on emerging markets. The discussion also explores possible central bank actions in response to a Brexit vote.

What is the expected impact on market volatility if the remain vote wins in the Brexit referendum?

• Volatility will fluctuate unpredictably.

• Volatility will remain unchanged.

• Volatility will decrease.

• Volatility will increase significantly.

How does the Federal Reserve's decision-making process relate to recent economic data?

• The Fed only considers international economic data.

• The Fed places significant weight on the most recent data.

• The Fed ignores recent data and focuses on long-term trends.

• The Fed relies solely on historical data.

What could Janet Yellen emphasize in her testimony that might surprise the markets?

• The necessity of the Fed normalizing rates.

• A complete halt to any rate changes.

• A focus on international policies.

• Immediate rate cuts.

What is a major concern for emerging markets in relation to Fed policy changes?

• Decreased foreign investment.

• Increased domestic production costs.

• Changes in local government policies.

• Capital flows out of emerging markets.

What immediate action might central banks take if the Brexit vote results in a leave decision?

• Increase interest rates.

• Announce currency swaps to stabilize markets.

• Implement new trade tariffs.

• Reduce government spending.