Pimco's Wilding Sees Slower Pace of Rate Cuts in 2025

The transcript discusses market expectations for rate cuts in December and January, highlighting a 90% chance for December and a 30% chance for January. It covers the Federal Reserve's economic projections, indicating a likely 25 basis point rate cut and a stronger economy forecast. The impact of tariffs on growth and inflation is examined, with a focus on policy uncertainty under the Trump administration. The probability of future rate hikes is considered low unless inflation significantly accelerates, potentially due to supply side shocks.

What is the market's expectation for the December rate cut?

• 100% chance

• 90% chance

• 70% chance

• 50% chance

What is the Federal Reserve's anticipated action for 2024?

• Introduce new economic policies

• Implement a sequence of quick rate cuts

• Maintain current rates

• Increase interest rates

How might tariffs affect inflation according to the discussion?

• Decrease inflation

• Increase inflation

• Stabilize inflation

• Have no effect on inflation

Under what condition might the Federal Reserve consider raising rates?

• Unemployment decreases significantly

• Inflation reaches 2%

• Inflation reaches 4%

• Inflation reaches 3%

What is a potential consequence of tariffs on the U.S. economy?

• Lower activity and higher prices

• Decreased inflation

• Increased manufacturing capacity

• Immediate economic growth