PIMCO: New Neutral Nirvana?

PIMCO: New Neutral Nirvana?

15 januari 2019

Rente Verenigde Staten
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By Joachim Fels, PIMCO Global Economic Advisor

By Joachim Fels, PIMCO Global Economic Advisor

Following a turbulent December characterized by volatile markets and the Fed’s fourth rate hike in 2018, which brought the upper limit of the target range for the federal funds rate to 2.5%, U.S. monetary policy looks set to enter a new phase: The Fed appears to have arrived at, or close to, the end of the rate hike cycle and the policy rate should now broadly flatline at or close to current levels in the foreseeable future.

Fed policymakers’ new buzzword is that they can be “patient” as they see how the data evolve in 2019. Fed chair Powell introduced the new language at the panel with his two predecessors on January 4

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