10 Questions
What could cause overall inflation according to the text?
Asset price inflation
How does the current core PCE compare to the Fed's previous expectations?
Lower than expected
What did Powell examine when considering rates according to the text?
Fed funds rate minus one-year breakeven inflation rate
What was the reaction of the market after Powell's statement about rate cuts?
Market went down
What led to fears in the market regarding New York Community Bank?
Loan loss provision of $550MM
What factor does Powell take into account when assessing the need for rate cuts?
Fed funds rate minus one-year breakeven inflation rate
How did bonds react after Powell's statement?
Rallied without issues
What made Wednesday a risk-off day in the market?
Loan loss provision by New York Community Bank
What was the Fed funds futures curve predicting on Wednesday, as per the text?
Fewer cuts by year-end than on Tuesday
What is one of the reasons offered for not making aggressive cuts immediately?
Waiting for more economic data
Test your knowledge on US interest rates, the Federal Reserve, and statements made by Chairman Powell. See how well you understand the impact of interest-rate differentials on currencies like the euro and USD.
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