Pimco Sees Fed Balance Sheet as 'More Favorable' to Markets in 2019

The video discusses the current state of the US economy, focusing on the Federal Reserve's balance sheet and its impact on financial markets. It explores whether the Fed will maintain its balance sheet on autopilot despite weakening data and predicts changes in the Fed's approach by 2019 and 2020. The discussion includes market reactions and the Fed's use of interest rates as a primary monetary policy tool.

What are the implications of the Fed's balance sheet staying on autopilot?

How did the Fed's balance sheet change from under $1 trillion to its current size?

How might the markets react to the Fed's potential actions regarding Treasurys?

What factors might lead the Fed to stop shrinking its balance sheet?

What role does the Fed's interest rate play in its monetary policy?