Neutral Rate Insights
There's ongoing debate about whether the long-term neutral rate of interest has increased since pre-Covid, with some suggesting it may be modestly higher due to factors like rising debt levels and the need for infrastructure investment. Despite this uncertainty, there's a belief that central banks still have significant room to cut rates, especially if economic conditions weaken. Current financial conditions indicate that credit spreads remain near cycle lows, hinting at a complex market landscape.In this clip
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Pimco CIO Dan Ivascyn on the Biggest Fed Decision in Years
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