Pimco's Balls Sees Global Markets Pricing in a Tightening Cycle

The video discusses the preparedness of markets for hawkish central banks, focusing on the RBNZ, ECB, and the US Fed. It highlights the differences in market pricing between Europe and the US, noting the impact of energy prices in Europe and the need for the US Fed to go above neutral rates to control inflation. The UK market is also examined, considering the effects of the Ukraine conflict. The video concludes with a discussion on the challenges faced by the US Fed in balancing inflation control with economic growth.

In what ways might the market have overshot its expectations regarding the ECB?

What are the potential risks associated with the Fed's tightening policies?