Fed Willing to Run Economy Hot, Pimco's Kiesel Says

The video discusses the impact of Chairman Powell's new framework on the Federal Reserve's approach to inflation and interest rates. It highlights the historical undershooting of inflation targets in the US, Europe, and Japan, and suggests that Powell is willing to let the economy run hot. PIMCO's strategy on low interest rates is examined, along with predictions for future economic recovery and potential rate increases due to fiscal and monetary policy support.

What factors could lead to a steeper curve and higher rates in the future?

In what ways do fiscal and monetary policy support influence interest rates over time?