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Top Asia Fund Joins Ackman in Saying Fed Has Fallen Behind Curve

  • PineBridge says 50 basis-point hike in March is not off table
  • U.S. 10-year yields may climb to 2% to 2.25% range, Slim says
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WATCH: PineBridge’s Omar Slim says the Fed is “doing a bit of a sharp turn with the narrative.”Source: Bloomberg

One of Asia Pacific’s best-performing bond funds is echoing billionaire investor Bill Ackman by saying the Federal Reserve has fallen behind in fighting inflation and may have to raise interest rates by half a percentage point in March.

“The fact that they went on for so long with the transitory inflation narrative really hurt their credibility and I think they do need to catch up in terms of being ahead of the curve,” said Omar Slim, a money manager at PineBridge Investments in Singapore. For that reason, “a 50 basis-point hike is not off the table” in March, he said.