Traders have priced out rate cuts and priced in odds of a rate hike. Is this dramatic repricing appropriate or overdone?
Scarlet Fu
Kathy Jones
I think it's appropriate because the conflict is longer and more escalated than anticipated, causing an energy price shock and inflation hit.
Kathy Jones
I'm not sure that it's accurate that the Fed is going to hike rates anytime soon, but it's more appropriate to go from building in one or two rate cuts to being at least neutral at this stage.
What does the rapid flattening of the yield curve tell us about market risks?
Scarlet Fu
Kathy Jones
The flattening reflects the rush at the short end to price in a shift in rate expectations, taking out rate cuts.
Kathy Jones
Higher energy prices mean capital investment will slow down, hiring will slow down, GDP growth comes down and eventually that does mean lower rates and lower inflation.