Pimco's Wilding Says U.S. GDP Growth Could Top 7% This Year

The video discusses the impact of a $1.9 trillion stimulus on economic growth, predicting a growth rate of over 7%, the fastest in 40 years. It highlights the output gap and structural changes in the labor market that may dampen inflationary pressures. The Fed's focus on labor market slack is expected to keep inflation low. Employment levels lost during the pandemic are not expected to recover until mid-2023, with the Fed aiming for maximum employment.

What is the expected growth rate of the economy due to the $1.9 trillion stimulus?

• 5%

• 3%

• 10%

• 7%

What is the main factor that might prevent prolonged inflationary pressures according to the video?

• Increased consumer spending

• Structural changes in labor markets

• Decreased government spending

• Higher interest rates

What is the Fed's long-term inflation target?

• 1%

• 3%

• 2%

• 4%

By when does the video predict that jobs lost during the pandemic will be fully recuperated?

• End of 2023

• Middle of 2022

• Middle of 2023

• End of 2022

What is the main reason for the delay in reaching pre-pandemic employment levels?

• Increased automation

• The pandemic's impact on job trends

• Higher taxes

• Lack of government support