Repo Turmoil Points to Shortage of U.S. Dollars in System, Says Manulife’s Trinh

The transcript discusses the implications of repo rates and signals from money markets, suggesting a shortage of US dollars. It explores global interest rate policies, including negative rates in Japan and the Eurozone, and the impact of QE. The discussion highlights market optimism and underpreparedness for crises, alongside systemic and geopolitical risks. The Fed's response to inflation, considering oil prices and future interest rate cuts, is also analyzed, emphasizing disinflationary forces over a 12-18 month horizon.

What are the potential risks associated with the current optimism in the markets?

In what ways might the Federal Reserve respond to rising oil prices and inflation?