Fed Playbook May Not Be Effective Against Virus Shock, Pimco's Wilding Says

The video features a discussion with PIMCO's chief US economist on the current state of bond markets and the Federal Reserve's actions in response to economic shocks. It highlights the challenges faced by central banks and governments in addressing market disruptions caused by the pandemic. The conversation also covers the uncertainty in financial markets and the potential for global recessions, emphasizing the need for targeted policies to maintain market stability.

What is one reason the bond markets are not performing as expected?

• The Federal Reserve has increased interest rates.

• Investors are confident in the stock market.

• The Federal Reserve has already lowered interest rates to zero.

• The bond market is unaffected by the virus.

What did the Bank of England and the UK Government do to address economic challenges?

• They increased taxes.

• They announced a budget and monetary policy measures.

• They reduced public spending.

• They closed all banks.

Why is it important for central banks to keep markets functioning?

• To stop the spread of the virus.

• To increase inflation rates.

• To ensure banks can continue to provide credit.

• To reduce government debt.

What is a major concern regarding the virus's impact on the global economy?

• It could lead to global recessions in affected countries.

• It will only affect the technology sector.

• It will only affect small businesses.

• It will have no impact on financial markets.

What action did the Federal Reserve take in response to the economic impact of the virus?

• Implemented an emergency 50 basis point rate cut.

• Increased interest rates by 50 basis points.

• Stopped all monetary policy actions.

• Increased taxes on corporations.