PIMCO: The Fed will keep interest rates unchanged for the foreseeable future, waiting for Trump's policy to become clear

Odaily reports that according to the Financial Times of the UK, Pacific Investment Management Company (PIMCO) stated that the Federal Reserve will keep interest rates unchanged in the "foreseeable future" and may even raise rates as the market awaits clarity on Trump's policies. PIMCO's Chief Investment Officer Dan Ivascyn said he expects the Fed to keep rates stable until "the data or policy becomes clearer." "In the long run, many of Trump's policies could have a very, very positive impact on economic growth (and) productivity. Some policies may make sense in the long run, but could bring some pressure in the short term," Ivascyn said. He said a Fed rate hike is "certainly possible" although it is not his baseline scenario. He pointed out that recent surveys show consumer inflation expectations (usually a leading indicator) have risen. "From an inflation standpoint, we're not out of the woods yet."