Would you agree that the probability of

the Fed cutting rates this year is zero?

>> Yes.

>> Zero.

>> Zero. It's not going to happen.

>> Not going to happen.

>> Economy is too strong, inflation is high

for a number of different reasons,

partly because the economy is strong,

also because of tariffs, also because of

of course all the prices that have gone

up and we're also seeing now a

contribution to inflation of 0.3 coming

from the AI and data center build out

because semiconductors are more

expensive, labor to build data centers

is more expensive and you also have

equipment is also more expensive and

energy also being more expensive is also

adding to inflation. So there is

literally zero chance that he will cut

interest rates this year.

>> How about raise them?

>> Well, the market as we speak today

pricing that the Fed will be hiking

rates in September and in December. So

that's two hikes.

>> Wow.

>> So that's pretty

>> a shift.

>> It is very dramatic shift as you and I

know very well in the beginning of the

year the dot plot was clearly saying

that the Fed is going to cut cut cut and

rates are going down.

>> Right.

>> And now suddenly we have a situation

where the market is pricing that will

maybe especially after his latest press

conference where he said I'm not going

to give any forward guidance. And when

you're not getting forward guidance the

market has to start guessing and that's

why you and I are now guessing and the

best guess that the market has at the

moment is that we will see hikes coming.