PIMCO: The Fed Will Keep Rates Unchanged for the Foreseeable Future, Awaiting Clarity on Trump Policy

BlockBeats News, January 23rd: According to the Financial Times, Pacific Investment Management Company (PIMCO) stated that as the market awaits clarity on Trump's policies, the Federal Reserve will keep interest rates unchanged in the "foreseeable future," and may even raise them.

PIMCO's Chief Investment Officer Dan Ivascyn stated that he expects the Fed to keep rates steady until the data or policy outlook becomes clearer. He said, "Longer-term, many of Trump’s policies could be very, very positive for economic growth and productivity. Some of the policies could make a lot of sense over the long term but may create some near-term pressure."

Ivascyn mentioned that a Fed rate hike is "certainly possible," although it is not his base case scenario. He pointed out that recent surveys have shown an increase in consumer inflation expectations, which are usually a leading indicator. He said, "From an inflation standpoint, we're not out of the woods yet." (FXStreet)