Pimco Says U.S. Economy Not as Late Cycle as Many Thought

The video discusses the challenges of forecasting recessions, referencing a past prediction of the 2007 recession. It highlights the Federal Reserve's recent dovish stance, which may have delayed an impending recession. The discussion then shifts to the European Central Bank (ECB), which faces significant challenges due to negative interest rates and limited tools to combat a future recession. The ECB's potential actions, such as buying equities, are considered insufficient to address economic issues, raising concerns about the eurozone's future economic stability.

What are the implications of the ECB reaching the limits of its bond buying?

What concerns are raised about fiscal policy's reaction to the next recession?