Moody’s Analytics’s Cochrane Sees Fed Cutting by 25BPS in September and December

The video discusses the current economic uncertainties, particularly focusing on the impact of new tariffs from the Trump administration. It highlights how these tariffs have increased economic uncertainty and affected the Federal Reserve's policy outlook. The discussion includes potential changes in interest rates and the increased risk of a recession in the US economy. The video concludes with a forecast of possible Fed policy adjustments, including interest rate cuts, in response to these economic challenges.

What is the significance of the potential new tariffs mentioned?

What were the expectations for the Fed's policy before the recent changes?

How have the risks to the US economy changed according to the text?

What factors could lead to a higher probability of recession next year?

What changes were made to the forecast for Fed policy in light of recent events?