Pimco's Veit: Tapering Is a Misnomer When It Comes to ECB

The transcript discusses the economic outlook, focusing on growth and inflation forecasts. It examines the European Central Bank's (ECB) asset purchase strategy, including tapering and quantitative easing (QE) plans. The ECB's monetary policy and fiscal strategy are analyzed, highlighting differences between the US and Europe. Interest rate and yield projections are explored, with comparisons to the Federal Reserve. Finally, investment opportunities in Europe, particularly in bonds and spreads, are identified.

What is the ECB's stance on inflation for 2023?

• They forecast a significant decrease.

• They anticipate it will be below the target.

• They believe it will remain unchanged.

• They expect it to exceed the target.

What is the ECB's plan regarding asset purchases until 2023?

• To stop all purchases immediately.

• To continue buying assets until rates are raised.

• To increase the purchase pace significantly.

• To only buy assets under the PEP program.

How does the ECB view the role of fiscal policy in Europe compared to the US?

• They think fiscal policy is irrelevant.

• They believe Europe should rely more on fiscal policy.

• They view it as less important than in the US.

• They see it as identical to the US.

What is the expectation for the ECB's first rate hike compared to the Fed?

• It is expected to happen before the Fed's hike.

• It is projected to occur at the same time as the Fed's hike.

• It is anticipated to be a few months after the Fed's hike.

• It is not expected to happen in this cycle.

Where does the ECB see investment opportunities in Europe?

• In real estate markets.

• In spread space and select credits.

• In high-risk stocks only.

• In government bonds exclusively.