Pimco Sees Fed Raising Rates Again If US Inflation Reignites
- There’s a risk of no US policy easing this year, says Mittal
- Favors UK, Australia, Europe and Canadian bond markets over US
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Pacific Investment Management Co. warned that the Federal Reserve could pivot back toward interest rate hikes if US inflation moves higher, with the asset manager preferring to buy bonds in other markets.
The California-based firm, one of world’s largest fixed income investors, maintains a preference for bonds in the UK, Europe, Australia and Canada over US Treasuries, on the view that central banks there are more likely to deliver on policy easing this year.