Fed Could Pivot and Potentially Cut Rates by 2H: Liang

The video discusses the expected downshift in rate hikes to 25 basis points due to decelerating CPI. It highlights the importance of data dependency and the Fed's hawkish tone, influenced by historical events like Arthur Burns' policies. Current economic indicators suggest recessionary trends, with shelter costs remaining high. The market's narrative contrasts with the Fed's, as they aim for a 5% terminal rate. Future projections include potential rate cuts due to rising unemployment and financial tightening. The Fed's move towards normalization and QT is also examined.

What are the implications of the current economic indicators mentioned in the text?

What does the text suggest about the future trajectory of unemployment rates?