PIMCO Anticipates Stable Interest Rates Amid Uncertainty Over Trump Policies

According to Odaily, Pacific Investment Management Company (PIMCO) has indicated that the Federal Reserve is likely to maintain stable interest rates in the foreseeable future as it awaits clarity on policies from former President Donald Trump. PIMCO's Chief Investment Officer, Dan Ivascyn, expressed his expectation that the Federal Reserve will keep rates unchanged 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 exert pressure in the short term. While he considers a rate hike by the Federal Reserve a possibility, it is not his baseline scenario. He also pointed out that recent surveys have shown an increase 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.