Citigroup's Mann Says Fed May Hike Key Rate This Year

The video discusses economic expectations for Europe and the US, focusing on inflation and its impact on the Federal Reserve's rate decisions. It explores the Fed's mandates, including price stability, full employment, and financial market stability. The potential for inflation surprises due to tariffs, rising wages, and interest expenses is highlighted. The video concludes with a prediction that the Fed will likely hike rates mid-year.

What are the ECB and the Fed hoping for in the economic outlook?

• A decrease in inflation

• A rise in unemployment

• A second half pick up

• A stable financial market

Which of the following is NOT one of the Federal Reserve's well-known mandates?

• Trade balance

• Financial market stability

• Full employment

• Price stability

What is the incorrect interpretation of financial market stability?

• Assets are priced incorporating risks

• Incorporating equity risk premium

• No volatility in financial markets

• Incorporating credit risk

What factors might lead to an inflation surprise this year?

• Decreasing tariffs

• Stable interest tax shields

• Rising wages and tariffs

• Decreasing producer price index

When is the Fed expected to hike the key rate this year?

• End of the year

• Middle of the year

• Beginning of the year

• Not at all