How Many Times Will the Fed Cut Rates?

The video discusses the strong market expectations for Fed rate cuts, with investors pricing in multiple cuts by January 2021. It examines the Fed's limited ability to support the economy from a low base and the potential need for non-traditional measures. The role of consumer spending as a key economic support is highlighted, alongside the risks of recession and the Fed's limited arsenal to counteract it.

What is the market's expectation for Fed rate cuts between now and January 2021?

• No rate cuts

• Five rate cuts

• Seven rate cuts

• Three rate cuts

Why might the Fed need to consider non-traditional measures?

• Because traditional tools are ineffective at high interest rates

• To decrease unemployment

• Due to the approach of the lower zero bound

• To increase inflation

What was the sole organic support to growth in Q2 GDP?

• Manufacturing

• Government spending

• Business investment

• Consumer spending

What probability of recession in 2020 and beyond does one expert assign?

• 10%

• 50%

• 25%

• 40%

What is a significant challenge the Fed faces in supporting the economy?

• Lack of public support

• Political constraints

• High inflation

• Low unemployment