De Mello: Won't Sell Bonds Despite Hawkish Fed

The transcript discusses the Federal Reserve's concerns about inflation and the need for rate hikes. It explores the impact on the bond market, highlighting the challenges central banks face with slowing growth and high inflation. The risks of stagflation versus recession are compared, with historical context from the 1970s. Global implications, including a strong dollar and its effects on Asia, are examined. Concerns about Chinese growth amid COVID-19 lockdowns are addressed. The stability of credit markets and the effectiveness of central bank communication are also discussed.

What concerns does the Fed have regarding inflation?

How does the current global growth picture affect central banks?

What are the potential consequences of stagflation?

What factors are contributing to the current inflation situation?

What implications does a strong dollar have for other countries?

How does the bond market react to the Fed's interest rate hikes?

In what ways has the Fed improved its communication regarding policy?