Pimco's Fels Sees a Question Mark Over Fed Independence

The video discusses the potential impact of Trump's administration on the Federal Reserve's independence, market reactions, and monetary policy. It explores comparisons between Trump's economic plans and those of Eisenhower, particularly in infrastructure. The discussion also covers currency movements, including the dollar's strength and China's potential retaliation, as well as the ECB's actions to address collateral shortages in Europe.

What was one of the criticisms candidate Trump had about Janet Yellen during his campaign?

• She raised interest rates too quickly.

• She was too supportive of the gold standard.

• She did not raise interest rates and inflated a bubble.

• She was too aggressive in auditing the Fed.

What is a potential consequence of a less independent Federal Reserve on the dollar?

• The dollar may depreciate significantly.

• The dollar may continue to strengthen.

• The dollar may become more volatile.

• The dollar may stabilize at current levels.

Which historical figure does Trump admire for their infrastructure spending?

• Ronald Reagan

• John F. Kennedy

• Dwight D. Eisenhower

• Franklin D. Roosevelt

What is a potential risk associated with Trump's economic plans, according to the discussion?

• Aggressive foreign policy

• Decreased infrastructure spending

• Lower inflation rates

• Increased unemployment

What is one reason the dollar might not have much room to rally further?

• A decrease in U.S. economic growth

• An increase in global oil prices

• The Fed's dovish messaging on future rate hikes

• A stronger euro

What concern does China have regarding a strong dollar?

• It makes their exports cheaper.

• It causes their currency to depreciate.

• It leads to higher inflation in China.

• It appreciates their currency against the world.

What is the ECB's plan to address the shortage of collateral in the euro repo market?

• Increase interest rates

• Extend the QE program

• Implement currency controls

• Reduce lending programs