MLIV Pulse: When Will the Fed Start Cutting Rates?

The video discusses the onset of a recession in advanced economies, starting with the UK and eurozone, and soon affecting the US. Inflation remains high, leading to stagflation reminiscent of the 1970s. The Federal Reserve's actions, including a potential pause or 'high hold' in interest rates, are analyzed. The video predicts a more normal interest rate environment in the future, with long-term rates possibly decreasing, but warns against overestimating this possibility.

Which economies are mentioned as entering a recession?

• Brazil and Argentina

• Australia and New Zealand

• United Kingdom and eurozone

• China and India

What economic condition is compared to the 1970s in the video?

• Hyperinflation

• Deflation

• Economic boom

• Stagflation

What is the Federal Reserve's current stance according to the video?

• A complete pivot

• A pause or high hold

• A rate cut

• No change in policy

What is the expected trend for recessionary risk in the US by the end of 2023?

• Stable

• Rising

• Decreasing

• Unpredictable

What is the video’s perspective on the future Fed funds rate?

• It will remain at 5%

• It will drop to 1%

• It will stabilize at 2.5%

• It will rise to 4%