Pimco MD Sees Fed Raising Rates Three Times This Year

The video discusses the market's implied odds for Federal Reserve rate hikes, highlighting a 38% chance of a 25 basis point move in March and a 27% chance of three hikes this year. It explores the impact of Trump's policies on the economy, noting both positive and negative potential outcomes. The discussion also covers the risks of trade wars and a retreat from globalization, with insights from Australian Prime Minister Malcolm Turnbull on the importance of free trade. Finally, the video explains why bond portfolios are resilient to rising interest rates, emphasizing the reinvestment of maturing bonds and coupons.

What is the current market implied probability of the Federal Reserve moving 25 basis points in March?

• 50%

• 15%

• 38%

• 27%

How does the speaker view the impact of Trump's policies on the US economy?

• No impact at all

• Completely positive

• A mix of positive and negative

• Entirely negative

According to the transcript, what is a major risk associated with protectionism?

• Lower interest rates

• Higher inflation

• Increased globalization

• Trade wars

What does Malcolm Turnbull emphasize as crucial for Australia's economic future?

• Free trade

• Protectionism

• Isolationism

• Higher taxes

Why are bond portfolios considered resilient to rising interest rates?

• They only contain short-term bonds

• They are backed by government guarantees

• They have bonds maturing and reinvested at higher rates

• They are not affected by interest rates