It's R** Not R* We Have to Worry About: Markets Live

The video discusses the concepts of R Star and R Double Star, focusing on their roles in balancing supply and demand and ensuring financial stability. It highlights the challenges the Fed faces in managing inflation and financial stability, especially when R Double Star diverges from R Star. Historical Fed hiking cycles are analyzed, showing how financial instability can occur before inflation is controlled. The video also explores the Bank of England's approach to interest rates and financial market operations, suggesting potential strategies for the Fed.

In what ways did previous Fed hiking cycles differ from the current situation regarding financial instability?

What concerns arise if the Fed is forced to pivot without a change in inflation?