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Pimco: Inflation pressure may make the Fed cut interest rates slower than other major central banks

Pimco: Inflation pressure may make the Fed cut interest rates slower than other major central banks

2024/03/26 06:47

According to reports from Jin10, bond fund giant Pimco believes that inflationary pressure may cause the Federal Reserve to cut interest rates more slowly than other major central banks. As a result, Pimco holds fewer U.S. Treasury positions than usual and is leaning more heavily into bonds from countries like the U.K. and Canada. Chief Investment Officer Andrew Balls said outside the United States, they were seeing more evidence of an adjustment in inflation. He believes that the Fed will cut interest rates slower than the market is pricing in, but outside the United States, some central banks may move beyond market expectations. While his base case expectations for inflation and Fed rate cuts are similar to market consensus, he sees risks from stronger economic activity and sticky inflation.

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