Pimco's Wilding Sees Fed Rate Hikes in 2023

The transcript discusses key questions for the FOMC meeting, focusing on whether the Fed has started discussing tapering and how economic projections have been updated. It highlights the possibility of tapering due to improved growth and employment forecasts, despite transitory inflation. The discussion also covers the need to revise inflation forecasts and the potential for interest rate hikes in 2023, emphasizing the interconnectedness of tapering decisions and economic projections.

What are the two main questions discussed for the FOMC meeting?

• The impact of unemployment on inflation and the role of central banks.

• The effect of global markets on the US economy and the Fed's response.

• If the Fed started discussing tapering and how they updated economic projections.

• Whether the Fed will increase interest rates and how they will manage inflation.

Why might the Fed consider socializing tapering at the September meeting?

• To align with global economic policies.

• To decrease unemployment rates.

• To manage inflation expectations and prepare for potential risks.

• To increase interest rates immediately.

What is the expected change in the Fed's economic projections?

• A reduction in inflation expectations.

• An upgrade in growth and inflation forecasts.

• An increase in unemployment rates.

• A decrease in growth forecasts.

How are the updated economic projections expected to affect interest rate hikes?

• Interest rates will decrease.

• Interest rates will remain unchanged.

• Interest rate hikes will be postponed indefinitely.

• Interest rate hikes will be moved to 2023.

What is the central bank's focus in managing risks at this meeting?

• Enhancing international cooperation.

• Managing potential risks to inflation expectations.

• Reducing global trade deficits.

• Increasing employment rates.