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00:00You expect Jay Powell will signal that. And what would the reaction be. Well first Joe thanks for having me on. So we're just cut to the chase. We're not expecting the chair to signal a 50 basis point rate hike at the March meeting. We think that that outcome is actually very unlikely. I think there's other policy levers that the FOMC could take to tighten monetary policy that would be less abrupt. You know when we look at the data although labor markets do look tight they look like to be rapidly progressing towards maximum employment. Inflation obviously is overshot. The data doesn't suggest to us that type of abrupt policy is necessary as of yet. So our expectation is is that you'll have a 25 basis point rate hike in March. But the chair probably will signal that you should expect additional interest rates after March. So it's not just one. One and done here. It's a path of interest rates. I've been of course in addition. They'll probably start to talk more about how the central bank is really going to implement QE T or the reduction of its balance sheet. We've already known from the minutes from the December meeting that it's going to be more aggressive and sooner this rate hiking cycle relative to the past.

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Pimco's Wilding Sees 'Abrupt' Fed Rate Hikes as Unlikely

Tiffany Wilding, North America economist at Pacific Investment Management Co. (Pimco), says she doesn't expect the Federal Reserve to raise rates 50 basis points at the March meeting of the policy-setting Federal Open Market Committee. She speaks on "Balance of Power." (Source: Bloomberg)

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