Rate Hike Back on the Table? Pimco Sounds Alarm Over Iran War Inflation
BeInCrypto
PIMCO warns that rising inflation linked to the Iran conflict may force the Federal Reserve to raise rates instead of cutting them.Summary
Leading bond manager PIMCO suggests the Federal Reserve may need to consider interest rate hikes rather than cuts due to persistent inflation driven by the conflict between the US and Iran. CIO Dan Ivascyn warned that reducing borrowing costs prematurely could be counter-productive, noting that similar tightening trends are emerging elsewhere. Other major firms, including Franklin Templeton and Goldman Sachs, have also expressed skepticism regarding near-term rate cuts, citing sticky inflation and elevated energy costs as primary concerns that threaten to keep core PCE indices above target levels.
(Source：BeInCrypto)