Pimco Favors Inflation Bonds Countering Fed Caution on Prices
- Inflation, crude oil prices will stabilize in 2016, Worah says
- Fed's Bullard says drop in inflation expectations `worrisome'
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Pacific Investment Management Co. is recommending Treasury Inflation Protected Securities even as tumbling oil costs prompt Federal Reserve officials to voice concern that consumer prices are stagnating.
An inflation rate that’s stuck near zero combined with crude close to a 12-year low are driving speculation the Fed will delay its next interest-rate increase. The odds the Fed will follow its December boost with at least one more in 2016 have fallen to 73 percent from 93 percent on Jan. 1, futures contracts show.