Fed Willing to Run Economy Hot, Pimco's Kiesel Says

The video discusses the impact of Chairman Powell's new framework on the Federal Reserve's approach to inflation and interest rates. It highlights the historical undershooting of inflation targets in the US, Europe, and Japan, and suggests that Powell is willing to let the economy run hot. PIMCO's strategy on low interest rates is examined, along with predictions for future economic recovery and potential rate increases due to fiscal and monetary policy support.

What is the main change in the Federal Reserve's approach under Chairman Powell's new framework?

• A willingness to run the economy hot

• An emphasis on maintaining low interest rates

• A focus on reducing unemployment

• A shift towards a higher inflation target

How long has the U.S. been undershooting its inflation target according to the transcript?

• 15 years

• 10 years

• 5 years

• 20 years

What does Mark Kiesel suggest about the future of the low rate regime?

• It will be replaced by a high rate regime

• It is uncertain and depends on global markets

• It may end soon due to economic recovery

• It will continue indefinitely

What could lead to a steeper yield curve according to the discussion?

• Global economic slowdown

• Increased unemployment

• Fiscal infrastructure spending

• Higher inflation rates

What is the expected impact of fiscal and monetary policy support on interest rates over time?

• Rates will be unpredictable

• Rates will decrease further

• Rates could increase

• Rates will remain low