PIMCO Predicts Federal Reserve To Maintain Interest Rates Amid Policy Uncertainty

According to Odaily, Pacific Investment Management Company (PIMCO) has indicated that the Federal Reserve is likely to keep interest rates unchanged for the foreseeable future as it awaits clarity on policies from former President Trump. PIMCO's Chief Investment Officer, Dan Ivascyn, expressed his expectation that the Federal Reserve will maintain stable interest rates until there is more clarity in terms of data or policy. Ivascyn noted that many of Trump's policies could have a very positive impact on economic growth and productivity in the long term. However, he acknowledged that some policies might create short-term pressures despite their potential long-term benefits. While Ivascyn considers a rate hike by the Federal Reserve a possibility, he does not see it as the baseline scenario. He highlighted recent surveys indicating a rise in consumer inflation expectations, which are often seen as a leading indicator. "From an inflation perspective, we are not out of the woods yet," Ivascyn remarked.