Pimco Says Fed May Need Tight Policy for Above Potential Economy

The video discusses short-term interest rates, the Fed funds rate adjusted for inflation, and the current state of monetary policy. It highlights the financial conditions, including stock prices, credit spreads, and the value of the dollar. The discussion also covers inflation expectations, with insights into the likelihood of inflation rising significantly and the market's response. The importance of inflation expectations as a driver of inflation is emphasized, referencing Janet Yellen's speech on inflation dynamics.

What does the market indicate about inflation expectations based on the 10-year TIPS?

What was Janet Yellen's conclusion regarding inflation expectations and their impact on inflation?