Market Is Pricing in a Pandemic; Fed Likely to Cut: Pimco

The video discusses the market's reaction to potential rate cuts, highlighting that historically, the Fed has often followed market pricing. PIMCO's strategy in response to the global economic slowdown is examined, with a focus on the potential for a V-shaped recovery. The impact of the pandemic on global markets is explored, noting the shift from a supply-side issue to demand destruction. Finally, the video covers fiscal and monetary policy responses, emphasizing the challenges of addressing supply shocks and the potential for fiscal measures to support economies.

What fiscal measures are being discussed in relation to the economic impact of the pandemic?

What is the speaker's view on the effectiveness of monetary policy during a supply shock?