JPM's Misra Sees Risk Assets Paying Attention to Rates

The video discusses the significance of interest rates, focusing on real rates and their impact on monetary policy. It examines the economic outlook, policy risks, and the relationship between interest rates and risk assets. The discussion also covers the yield curve and market pricing dynamics, highlighting the challenges in predicting peak interest rates.

What is a key factor driving the recent changes in the 10-year Treasury yield?

• Inflation expectations

• Stock market performance

• Unemployment rates

• Government spending

How are policy risks described in the context of growth and inflation?

• Primarily focused on unemployment

• Irrelevant to economic performance

• Two-sided, considering both growth and disinflation

• One-sided, focusing only on growth

What is the potential effect of bond sell-offs according to the transcript?

• They can become self-limiting

• They always result in higher interest rates

• They have no impact on the economy

• They can lead to increased inflation

Which sector is mentioned as being particularly affected by interest rate changes?

• Housing

• Technology

• Retail

• Healthcare

What is the market's current pricing of the neutral rate?

• 3%

• 6%

• 4%

• 5%