Market Is Pricing in a Rate Cut in 5 Months, Says Bianco Research’s President

The video discusses the concept of inflation, questioning whether it is transitory or structural. It highlights the market's perspective that inflation has been low for years and suggests the Fed should consider rate cuts. The bond market's reaction to the Fed's stance is explored, with emphasis on the volatility in bond yields. The video also covers the Fed's technical adjustments to the interest on excess reserves and questions their control over the funds rate.

Discuss the significance of the statement that low inflation might be a more permanent issue.

What does the repeated need for technical adjustments in the funds rate suggest about the Federal Reserve's control?