PIMCO: The Fed will maintain the Interest Rate unchanged in the foreseeable future, pending clarification of Trump's policies.

According to the Financial Times, PIMCO stated that the Federal Reserve will keep the Interest Rate unchanged in the "foreseeable future" and may even raise it, while waiting for the clarification of Trump's policies. Dan Ivascyn, Chief Investment Officer of PIMCO, said he expects the Federal Reserve to keep the Interest Rate stable until there is more clarity in terms of data or policy. "In the long run, many of the policies introduced by Trump may have a very, very positive impact on the economy and productivity. Some policies may make sense in the long run, but will bring some pressure in the short term." Ivascyn said that a Fed rate hike is "certainly possible", although it is not his benchmark scenario. He pointed out that recent surveys have shown a rise in consumer inflation expectations (usually a leading indicator). "From an inflation perspective, we haven't gotten out of trouble yet."