PGIM CEO: Inflation Will Be Muted, Low Rates Here to Stay

The video discusses the potential for long-term growth without inflation, emphasizing that inflation may rise temporarily due to base effects but will likely remain low due to demographic and technological trends. It highlights deflationary behaviors like online shopping and supply chain digitization. The bond market's signals are analyzed, noting recent yield increases and concerns about borrowing and economic overheating. The video concludes with a discussion on global economic trends, emphasizing the US Treasury market's role in attracting international capital and maintaining low interest rates.

What is the primary reason for the expected rise in inflation this year?

• Increased consumer spending

• Base effect from last year's low inflation

• Higher interest rates

• Government stimulus packages

How has online shopping contributed to deflationary trends?

• By creating more jobs

• By reducing supply chain costs

• By increasing product prices

• By increasing consumer demand

What recent change in the bond market has caused excitement and fear?

• A rise in stock market prices

• A 75 basis point move

• A decrease in bond yields

• An increase in inflation

What has been the trend of yields since the 1980s?

• Upward trend

• Stable trend

• Downward trend

• Fluctuating trend

How do global capital flows affect US interest rates?

• They put a lid on how much rates can rise

• They have no impact on rates

• They cause rates to fluctuate unpredictably

• They cause rates to rise significantly