Central Banks

Pimco’s Clarida Says Market Bets on US March Rate Cut Make Sense

  • Treasury 10-year yield likely to move in 3.25%-to-4.25% range
  • Fed will certainly be wary of declaring ‘mission accomplished’
WATCH: Richard Clarida, global economic advisor at Pimco and former vice chairman of the board of governors of the Federal Reserve, discusses the upcoming Federal Reserve decision and inflation.Source: Bloomberg
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Former Federal Reserve Vice Chairman Richard Clarida said market wagers on US interest-rate cuts in March are understandable given a scenario where there’s a “softish landing” and the central bank is confident it’s reined in inflation.

“A cut in March or at least a strong indication at the March meeting that cuts are imminent, you know, makes sense,” Clarida, who is now global economic advisor at Pacific Investment Management Co., said in an interview in Singapore.