The interview published by the Financial Times, in which the Chief investment officer at the U.S. bond giant Pacific Investment Management Co. (PIMCO) said they are preparing for a “harder landing” as senior central bank officials get ready to continue their campaign of interest rate increases.
“The more tightening that people feel motivated to do, the more uncertainty around these lags and the greater risk to more extreme economic outlooks,” Ivascyn told the FT. Observing that a delay of five or six quarters for the impact to be felt has been “the norm” when rates have increased in the past.
He told the FT that The market is “too confident in the quality of central bank decisions.”
