Unlikely to See a Fed Cut for Rest of the Year, Says Bank of Singapore’s Lee

The transcript discusses the Federal Reserve's high threshold for rate cuts, projecting increased unemployment and easing GDP growth. Despite trade headwinds, a trade agreement is expected, making a Fed cut unlikely this year. The bond market reacted to trade tensions, showing a dichotomy with the SMP near its all-time high and Treasury rates low. The divergence between stocks and yields is noted, with future outcomes hinging on trade developments. Trust issues in trade talks are highlighted, complicating negotiations.

What is the Federal Reserve's current stance on rate cuts?

• They have already cut rates this year.

• They plan to cut rates next year.

• They are likely to cut rates soon.

• They have a high threshold for cutting rates.

What is the expected trend for the 10-year U.S. Treasury rate according to the transcript?

• It will decrease significantly.

• It will remain stable.

• It will increase with a trade agreement.

• It will fluctuate unpredictably.

What is the main factor causing the divergence between stocks and yields?

• High consumer confidence.

• Strong corporate earnings.

• Stable economic growth.

• Trade tensions and negotiations.

What is the current state of trust in trade negotiations?

• Trust has been fully restored.

• Trust remains strong.

• Trust is irrelevant to negotiations.

• Trust has been eroded.

What is the potential impact of the hallway incident on trade negotiations?

• It has led to immediate agreements.

• It has eroded trust and made negotiations difficult.

• It has strengthened negotiations.

• It has no impact.