Cornerstone's Perli Sees Markets Pricing in 4 Fed Hikes

The video discusses the Federal Reserve's rate hike path, with a focus on market expectations and reactions to inflation data. Despite recent CPI figures, the base case remains three rate hikes, though the market has priced in a possibility of four. The bond market is wary of inflation and the Fed's response. The discussion also covers market psychology, fiscal stimulus, and the disconnect between traditional economic models and recent economic behavior, particularly regarding the Phillips curve and labor market dynamics.

What is the current base case for Fed rate hikes this year?

• Two rate hikes

• Four rate hikes

• Three rate hikes

• One rate hike

Why is the bond market nervous according to the discussion?

• Due to high unemployment rates

• Because of falling stock prices

• Because of potential inflation and Fed reactions

• Due to a strong dollar

What does the market consider when evaluating inflation risks?

• Interest rates in Europe

• Global oil prices

• Fiscal stimulus and tax cuts

• Only the labor market conditions

How has the relationship between inflation and wages been described?

• Strongly correlated

• Weakly correlated

• Uncorrelated

• Inversely correlated

What economic concept is mentioned as being 'flat' in the discussion?

• The Lorenz curve

• The Kuznets curve

• The Phillips curve

• The Laffer curve