Pimco's Clarida Says Tax Phase-in Would Be Terrible Idea

The video discusses the potential negative impact of phasing in corporate tax cuts, as it may delay investments and harm the economy. It highlights the uncertainties surrounding the tax bill, including its effects on the middle class and the challenges in passing it. The discussion also covers the potential Fed rate hikes in 2018 and the influence of a new Fed chair, emphasizing the continuity of current monetary policies.

What is a potential downside of phasing in corporate tax cuts?

• It simplifies tax planning for companies.

• It may delay corporate investments.

• It boosts short-term economic growth.

• It encourages immediate investment.

Why is tax reform considered challenging?

• It has been done frequently in the past.

• It requires agreement on many complex details.

• It only involves a few stakeholders.

• It is usually quick and easy to implement.

What is the expected number of Fed rate hikes in 2018 according to the current plan?

• Four

• Three

• Two

• One

How might a new Fed chair impact monetary policy beyond 2018?

• By having a significant influence on rates and the balance sheet.

• By reducing the number of rate hikes planned.

• By maintaining the current policy without changes.

• By focusing solely on short-term economic growth.

What approach has the Fed followed under Bernanke's leadership?

• A strategy of forward guidance.

• A policy of reducing market transparency.

• A plan to increase the balance sheet indefinitely.

• A focus on immediate rate changes.