Pimco's Clarida Says Yellen Has a Strong Legacy

The video discusses the legacy of Chair Yellen, focusing on her handling of monetary policy, rate normalization, and balance sheet reduction. It highlights the persistent issue of inflation being below the Fed's target and speculates on future interest rate adjustments. The discussion also covers potential economic scenarios, including inflation trends and the impact of tax cuts in a full employment economy.

What are some of the challenges that Chair Yellen faced during her tenure?

How has inflation performed relative to the Federal Reserve's target during Yellen's leadership?

What is the significance of the neutral rate in the context of monetary policy?

What is the baseline view regarding inflation's movement towards the target?

What factors could potentially lead to inflation overshooting the target?