Fed Managing to Decouple Tapering, Rates: BlackRock’s Watson

The transcript discusses the Federal Reserve's efforts to separate quantitative easing (QE) from interest rate decisions, highlighting market expectations for tapering and potential rate hikes in 2023 and 2024. It examines the behavior of US real yields compared to European rates and the potential market impact of Fed guidance. Additionally, it addresses the risks associated with the US debt ceiling and its implications for market volatility, particularly in the equity market.

What is the anticipated impact of the Fed's decisions on real yields and the dollar?

In what ways might the debt ceiling affect the Fed's decisions according to the discussion?