Why Pimco’s Crescenzi Sees Value in Front End of Yield Curve

The video discusses inflation trends following COVID-19, projecting a rise in the Consumer Price Index (CPI) to 2.2% by the end of 2022, with implications for Federal Reserve policy. The Fed is unlikely to raise rates until inflation exceeds 2% for a year. Market expectations suggest a rate hike by the end of 2023, offering opportunities in the yield curve.

What does the market expect regarding the timing of the first rate hike by the Fed?

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What implications does the text suggest about the yield curve and the Fed's potential actions?

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