Pimco’s Wilding Says Fed Has Been Effective in Adding Reserves

The transcript discusses the Federal Reserve's recent actions to manage monetary policy through technical adjustments in reserves, aiming for efficient transmission. It highlights the impact on money markets, the Fed funds rate, and the balance sheet operations, clarifying the lack of direct connection to risk assets. The conversation shifts to inflation, exploring the Fed's strategic shift towards average inflation targeting and its implications for unemployment and financial stability. The Fed's willingness to tolerate above-target inflation and its reactive stance to economic growth are also examined.

What adjustments were made to reserves and how did they affect monetary policy transmission?

Discuss the relationship between the Fed's balance sheet operations and risk assets as mentioned in the text.

What are the implications of average inflation targeting as discussed in the conversation?

How does the Fed's current stance on inflation affect its policy decisions?

What factors are influencing the Fed's approach to cutting or hiking rates according to the discussion?