PineBridge's Kelly Looks for Upswing in Economy in 2018

The video discusses economic surprises in 2017, including tax reform abroad and concerns about China's economy. It highlights the unexpected weakness of the dollar and the flattening of the yield curve, which some interpret as a sign of economic weakness. However, the speaker believes the economy will strengthen in 2018, with the dollar firming and the yield curve steepening. Historical comparisons are made to the 1990s and 2000s, suggesting that current trends may not indicate future economic downturns. The role of central banks in managing the yield curve is also examined, with expectations of changes in their influence by the end of 2018.

What was one of the unexpected economic trends discussed in the first section?

• Strengthening of the dollar

• Weakness of the dollar

• Decrease in unemployment

• Increase in interest rates

What does a flattening yield curve typically indicate?

• Rising inflation

• Stable economy

• Economic weakness

• Economic growth

What is the significance of the 2:10 yield spread mentioned in the second section?

• It indicates a strong economy

• It is at its highest in a decade

• It is at its lowest in a decade

• It predicts rising inflation

How do central banks influence the yield curve according to the final section?

• By setting interest rates at the long end

• By managing the entire spectrum of the yield curve

• By selling long-term bonds

• By buying short-term bonds

What is expected to happen to the yield curve as central bank effects wear off?

• It will flatten further

• It will invert

• It will remain unchanged

• It will steepen