Fed Has Lost Control of Yield Curve and Needs to Cut Rates, Economist Schomer Says

The video discusses the current economic data and the Federal Reserve's potential responses, including rate cuts and quantitative easing (QE). It explores possible economic scenarios, such as a recession, and the impact on the housing market and bond yields. The discussion highlights concerns about the Fed's control over the yield curve and the need for further rate cuts. The video also examines the potential effects of the European Central Bank's QE on global markets.

What is the primary action the Fed is expected to take in response to a weakening economy?

• Raise taxes

• Cut interest rates

• Implement quantitative easing

• Increase interest rates

What could potentially trigger a classic recession style domino effect?

• Strengthening of the economy

• Decrease in housing market prices

• Rising bond yields and interest rates

• Decoupling of the treasury market

What is the Fed's current challenge with the yield curve?

• It is too steep

• It is irrelevant

• It is too flat

• It is under control

What is the expected impact of European QE on US treasury yields?

• Increase in yields

• No impact

• Decrease in yields

• Stabilization of yields

How many rate cuts does the Fed need to regain control of the yield curve?

• Two or three

• One or two

• Four or five

• Six or seven