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.

What factors are contributing to the current positive market dynamics?

• Surprising vaccination rollouts

• Decline in company earnings

• Central banks tightening policies

• Decrease in fiscal stimulus

What is the market's expectation regarding the Fed's interest rate hike?

• Immediate hike in 2021

• A hike in December 2023

• No hike until 2025

• A hike in December 2022

According to the forecast, when is the Fed expected to hike rates?

• 2024

• 2023

• 2022

• 2021

What did Jerome Powell mention about the timeline to reach the Fed's inflation goal?

• It is already achieved

• It will take less than a year

• It will be achieved by next month

• It could take up to three years

What is the general outlook on inflation in the medium term?

• Inflation will decrease significantly

• Inflation will double

• Secular forces remain deflationary

• Inflation is expected to run away