Rate Cuts Ahead, but Inflation Keeps the Fed on a Tightrope

Former Fed Vice Chair Richard Clarida offers a data-driven view of global rate dynamics in PIMCO’s latest Chartbook on Interest Rates.

• Policy Outlook: The Fed is expected to cut rates further, though not to post-pandemic lows, as inflation remains above target.

• Market Signals: Equities stay buoyant, but long-term Treasury yields suggest persistent uncertainty on inflation and growth.

• Investment Implications: Elevated bond yields and positive real returns on TIPS and Bunds highlight renewed opportunities in fixed income.

For detailed charts and Clarida’s full macro analysis, explore the complete PIMCO report.