Pimco's Wilding Expects Fed to Start Tapering in January

The video discusses the potential for the Federal Reserve to announce tapering, analyzing recent economic data and market indicators. It highlights the temporary nature of current inflation trends and the impact of used car prices and durable goods demand. The discussion also covers risks such as low real interest rates, the debt ceiling, and the resurgence of COVID-19, particularly the Delta variant. The Fed is expected to be patient, considering these factors, with a potential announcement in December. The impact of COVID-19 on economic growth is expected to be modest, but it introduces some downside risks.

In what ways might COVID-19 impact the economic outlook as discussed in the text?

What is the overall view on the impact of the delta variant on economic recovery?