PIMCO has provided its insights on the Fed, reiterating key points made by commentators recently whilst adding its own opinion on when rates will rise. The world's largest bond fund clearly highlighted the difference between tapering of bond purchases and how it does not translate to tightening monetary policy and higher rates. Furthermore, it reiterated the Fed's view that it will move on data rather than date in terms of increasing interest rates and reducing bond purchases. PIMCO also sees the next Fed Chairman as being limited by the dual mandate and rules-based approach of the bank, meaning that its current policy will remain broadly similar. Lastly, PIMCO believes that rates will remain low until at least 2016. (VIEW LINK)
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