Fed 'Doesn't Hike When Business Investment Declines'

The transcript discusses the lack of historical precedent for the Federal Reserve to increase interest rates during periods of declining business investment. It highlights the current economic conditions, emphasizing the need for confirmation of growth in the US economy before considering a rate hike. The absence of wage inflation is noted as a key reason against raising rates. The transcript also forecasts a slight weakening of the US dollar and solidifies predictions for oil prices, suggesting potential impacts on the S&P TSX index.

What is the main reason the speaker believes the Fed should not hike rates during declining business investment?

• Wage inflation is high.

• The US economy is already strong.

• Global central banks are focused on growth and investment.

• There is a historical precedent for such actions.

Why does the speaker argue against increasing interest rates in the USA?

• There is no wage inflation to justify a rate hike.

• The global economy is declining.

• The US dollar is too strong.

• There is significant wage inflation.

What economic condition does the speaker say is necessary before the Fed should consider raising rates?

• A decline in global oil prices.

• An increase in the trade deficit.

• Confirmation of US economic growth.

• A decrease in the unemployment rate.

What is the predicted impact on the US dollar after June, according to the speaker?

• It will strengthen by 5%.

• It will weaken by 2-3%.

• It will remain stable.

• It will collapse.

How does the speaker's forecast for $55 oil relate to the S&P TSX?

• It will cause the S&P TSX to crash.

• It will have no impact.

• It will negatively affect the S&P TSX.

• It will help the S&P TSX.