The US Federal Reserve will probably raise interest rates by 25 basis points at its next meeting next weekbut new signs of instability in the financial sector could lead to a “hard” pause, said daniel ivascynChief Investment Officer at Pacific Investment Management Co (PIMCO).
“They will be very attentive to signs of more instability in the financial sector,” Ivascyn told Reuters.
“Certainly there are scenarios where they would pause, it will probably be a hard pause if it is a pause, but our current view is they go to 25 (basis points),” he added.
Fed funds futures pointed to a 25 basis point rise on Thursday. by the Fed at next week’s meeting, because concerns about inflation outweighed fears of a global banking crisis.
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