Pimco's Wilding Expects Fed to Start Tapering in January

The video discusses the potential for the Federal Reserve to announce tapering, analyzing recent economic data and market indicators. It highlights the temporary nature of current inflation trends and the impact of used car prices and durable goods demand. The discussion also covers risks such as low real interest rates, the debt ceiling, and the resurgence of COVID-19, particularly the Delta variant. The Fed is expected to be patient, considering these factors, with a potential announcement in December. The impact of COVID-19 on economic growth is expected to be modest, but it introduces some downside risks.

What has been the trend in used car prices according to the transcript?

• They have continued to rise.

• They have decreased significantly.

• They have remained stable.

• They have peaked and started to fall.

What is one of the reasons the Fed might delay announcing tapering?

• Cooling energy markets

• High real interest rates

• Increasing durable goods demand

• Stable inflation rates

Which upcoming event could create market volatility that the Fed might consider?

• An increase in interest rates

• A change in trade agreements

• The debt ceiling

• A new tax policy

How might the resurgence of COVID-19 affect people's behavior according to the transcript?

• People will travel more frequently.

• People will invest more in the stock market.

• People will avoid public places like movies and restaurants.

• People will increase their spending on luxury goods.

What is the expected impact of the Delta variant on economic growth?

• It will lead to a significant economic downturn.

• It will boost economic recovery.

• It will have a modest impact on growth.

• It will have no impact on the economy.