Treasuries, Trump and the Federal Reserve

The video discusses the impact of global deflationary pressures on currency and monetary policy, highlighting the challenges faced by the Federal Reserve in managing interest rates amid economic growth and full employment. It explores market anticipation of Fed actions and the potential effects of Donald Trump's economic policies, including fiscal risks and interest rate changes. The discussion also touches on the historical parallels with Ronald Reagan's policies and the unique position of Trump in navigating legislative challenges.

What is one of the risks associated with an appreciating currency in a deflationary global environment?

• Higher unemployment

• Importing deflationary pressures

• Increased inflation

• Decreased supply

What has been one effect of market anticipation on the yield curve?

• Flattening of the curve

• Steepening of the curve

• No change in the curve

• Inversion of the curve

What might the Federal Reserve consider when deciding on interest rate hikes?

• Current unemployment rates

• Global trade agreements

• Stock market performance

• Public opinion

What is a potential consequence of Donald Trump's legislative agenda according to the discussion?

• Higher currency value

• Lower interest rates

• Increased economic growth

• Decreased deficit

How does the discussion compare Trump's legislative approach to a past president?

• Ronald Reagan

• Bill Clinton

• George W. Bush

• Barack Obama