Pimco to Investors: Don't Underestimate the Chance of a Fed Mistake
- Economy adviser Fels spoke to a conference in Sydney Tuesday
- Fed Chair Janet Yellen to appear before Congress this week
Strategist Sinche Urges Markets to Look Away From Fed
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Pacific Investment Management Co. has a warning for investors: don’t underestimate the chance of a misstep by the Federal Reserve.
The U.S. central bank may tighten monetary policy faster than markets expect over the next two years in part as changes to key staff affect the sway of decisions, according to Joachim Fels, Pimco’s global economic adviser. Markets have ignored many risks as they focus on a potential boost from President Donald Trump’s policies, he said.