Sri-Kumar Says Fed Can't Hike Rates 3-4 Times in 2017

The video discusses the potential flattening of the yield curve despite Fed rate hikes, drawing parallels to past events. It highlights skepticism about the Fed's ability to implement multiple rate hikes due to stagnant economic growth and low inflation. The speaker anticipates US economic growth to remain similar to 2016 levels, with inflation staying low. The discussion also covers the underestimated global influences on the bond market, such as potential retaliatory actions by China and Germany, which could negatively impact growth and trade, further affecting the Fed's rate hike plans.

What historical event is used to explain the flattening of the yield curve?

• The 2008 financial crisis

• The first rate hike in December 2015

• The dot-com bubble burst

• The 2012 European debt crisis

Why does the speaker doubt the Fed's ability to implement three rate hikes in 2017?

• Because of political instability

• Due to high inflation rates

• Because of a lack of economic growth

• Due to changes in leadership at the Fed

What is the expected GDP growth rate for 2017 according to the speaker?

• 3.5%

• 2.5%

• 1.6% to 2%

• 4%

What global factors are mentioned as influencing U.S. bond yields?

• China and Germany's potential retaliatory actions

• The U.S. presidential election

• The Brexit vote

• The Paris Climate Agreement

What is the speaker's view on the bond bears' expectations for the 10-year yield?

• They are accurately predicting the market

• They are overly optimistic

• They are ignoring structural and global factors

• They are too pessimistic