Pimco's Fels Sees Interest Rates 'Flatlining at the New Neutral'

The video discusses PIMCO's research on economic trends, focusing on the concept of 'flatlining' in interest rates rather than economic growth. It highlights the impact of financial repression and increasing debt on keeping interest rates low. The discussion includes insights from Joachim Fels and the belief that central banks, like the Fed, will maintain low policy rates due to economic constraints.

What does the term 'flatlining' refer to in the context of PIMCO's research?

• Economic growth

• Interest rates

• Inflation rates

• Stock market trends

Why does PIMCO believe financial repression will persist?

• Due to decreasing debt levels

• Because of increasing debt levels

• Owing to technological advancements

• As a result of high inflation

What happens when interest rates rise too quickly according to the transcript?

• Inflation stabilizes

• The economy slows down

• The economy speeds up

• Debt levels decrease

What is the role of central banks in the context of low policy rates?

• To maintain low policy rates

• To increase interest rates rapidly

• To eliminate financial repression

• To reduce national debt

What is the expected future trend for interest rates according to the transcript?

• They will fluctuate unpredictably

• They will rise significantly

• They will fall drastically

• They will flatline at a neutral level