Fed:
Expect 2-3 hikes in 2019
Few believe the leveraged loans today would set off a crisis, since they focus on a smaller part of the economy rather than sprawling the housing mkt in 2008
The total leverage loan market is now doubled what is was in 2008, around 59% of them are junk loans.
Central bank has been paying attention to elevated loans this year. Powell said: we have our eyes on that.
Mnuchin inquires about whether fed could tighten policy by accelerating its balance sheeting shrinkage process rather than raising rates.
Trade war:
Trump and Xi agree to refrain from implementing incremental tariff for a brief period during which time the negotiations will take place.
Outlook 2019
US strength vs. rest-of-world sluggishness
Macro policy support vs. geopolitical drags
Robust corporate profits vs. modest capes growth
Rising DM wage inflation vs. flat CPI Phillips curve
