PIMCO Says Fed Rate Hike Under 50% Chance This Week

Pacific Investment Management Co, one of the world’s largest asset managers and advised by former Federal Reserve chairman Ben Bernanke, puts a “below 50 percent chance” the Fed will raise short-term interest rates this week, Pimco Group Chief Investment Officer Dan Ivascyn told Reuters on Monday.

Ivascyn said Newport Beach, Calif-based Pimco believes the U.S. central bank’s first rate hike in nine years will come before the end of the year, but not in September.

“The decision this week will be close,” Ivascyn said. “Global weakness, uncertainty around consumer sentiment, inflation still running below target are reasons the Fed will not move this week.”

Pimco held its quarterly forum last week. Pimco managing directors as well as senior advisers including Bernanke and consultant Gene Sperling discussed trends for economies and markets over next 12 to 18 months.

via Reuters

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