Pimco's Clarida Says Yellen Has a Strong Legacy

The video discusses the legacy of Chair Yellen, focusing on her handling of monetary policy, rate normalization, and balance sheet reduction. It highlights the persistent issue of inflation being below the Fed's target and speculates on future interest rate adjustments. The discussion also covers potential economic scenarios, including inflation trends and the impact of tax cuts in a full employment economy.

What was one of the key challenges Chair Yellen faced during her tenure?

• Increasing the unemployment rate

• Reducing inflation to below 1%

• Expanding the balance sheet

• Navigating post-crisis monetary policy

What is the 'neutral' rate according to PIMCO's projections?

• Somewhere in the threes

• Exactly 2.5

• Closer to two than three

• Below two

What is the current position of the 'dots' in economic forecasts?

• At 1 3/4

• At 2 3/4

• At 2 1/2

• At 3

What is one possible scenario for future inflation discussed in the video?

• Inflation drops to 0%

• Inflation remains at 1%

• Inflation stabilizes at 1.5%

• Inflation overshoots the 2% target

What economic condition is mentioned as influencing potential inflation changes?

• Increasing interest rates

• Decreasing employment

• Full employment

• Rising oil prices