Pimco's Fels Says Trump Doesn't Want to Start a Trade War

The transcript discusses the potential dissipation of a trade war and the initial meeting between leaders, focusing on trade and North Korea. It analyzes the Fed's passive and predictable approach to reducing the balance sheet and the risks of a hawkish policy mistake. The impact on equities and high yield markets is highlighted, along with changes in the yield curve and market reactions. The ECB's policy strategy is examined, with expectations for Draghi's dovish speech to maintain the yield curve's stability.

In what ways does the speaker believe the market is reacting to the Fed's potential policy changes?

What does the speaker predict about the ECB's approach to interest rates and QE?