Three Must-See Charts About the Future of Fed Policy

The video discusses the impact of the Brexit vote on Fed rate cuts, highlighting increased market pricing for rate cuts and the unusual nature of this development in a tightening cycle. It examines market reactions, the strength of the US consumer, and the implications of inflation and deflation instruments. The discussion includes the sensitivity of Fed funds futures to macroeconomic changes and the contrasting probabilities of rate cuts and deflation.

What were the market expectations regarding Fed rate cuts after the Brexit vote?

How did the probability of a Fed rate cut change from December to the present according to the text?

What is the significance of the economic data point mentioned in relation to consumer spending?

What factors contributed to the increase in disposable income for consumers?

Explain the contrast between the probabilities of rate cuts and deflation as discussed in the text.