Pimco’s Sundstrom Says Markets May Be Rushing Pricing of Rate Hikes

The transcript discusses the current state of the market, highlighting the positive impact of vaccination rollouts and fiscal stimulus on the economy. It addresses the repricing of bond yields and the role of central banks in maintaining accommodative policies. The conversation also covers expectations for rate hikes by the Fed, with some market participants anticipating hikes sooner than forecasted. The discussion concludes with an analysis of inflation trends and the economic outlook, noting that while inflation is expected to spike, secular forces remain deflationary.

According to the speaker, what is the outlook for risky assets in relation to the economic rebound?

What factors does the speaker believe will influence inflation in the coming years?