Bank of Singapore's Jerram Sees Fed Tighten Every Quarter

The video discusses recent economic data from the US and China, highlighting a slowdown in growth and softening commodity prices. It examines the Fed's potential rate hikes and inflation concerns, noting the risks of policy mistakes. The Fed's strategy to tighten policies and manage its balance sheet is explored, considering full employment and inflation normalization. The video also addresses market reactions, including falling bond yields and mortgage rates, and the implications for financial conditions.

What is the main reason for the recent softness in economic data from the US and China?

• A slowdown after a period of rapid growth

• A major policy shift by the Fed

• An unexpected rise in inflation rates

• A significant increase in commodity prices

What is the Fed's current concern regarding inflation?

• Inflation is causing a significant rise in unemployment

• Inflation is stable and not a concern

• Inflation is accelerating too quickly

• Inflation figures are disappointing and may indicate a technical slippage

How does the Fed plan to address full employment and inflation concerns?

• By increasing government spending

• By reducing interest rates significantly

• By implementing a steady program of rate hikes and balance sheet adjustments

• By maintaining the current interest rates

What is the effect of falling bond yields on mortgage rates?

• Mortgage rates increase

• Mortgage rates remain unchanged

• Mortgage rates decrease

• Mortgage rates become unpredictable

Why is the Fed concerned about financial conditions despite raising rates?

• Financial conditions have tightened significantly

• Volatility in the market has increased

• Financial conditions have loosened, counteracting rate hikes

• The dollar has strengthened too much

What is the potential risk if the Fed continues on its current policy path?

• A rapid increase in unemployment

• A significant drop in economic growth

• A major financial crisis

• A failure to control inflation effectively

What is the expected impact of lower mortgage rates on the housing market?

• It could have no impact on the housing market

• It could cause housing prices to fall

• It could stimulate the housing market

• It could lead to a housing market crash