RIP ZIRP | PIMCO

From Marc Seidner:

At this point, the evidence is close to overwhelming that the Federal Reserve will embark on a tightening cycle this year. The base case for markets should be a move in September. While the pace of tightening should be very shallow and the ultimate destination for interest rates considerably lower than historical experience, investors should not underestimate the potential volatility emanating from the first interest rate increase in nine years and the first move off of the zero bound in six years….

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3 Replies to “RIP ZIRP | PIMCO”

  1. I find apparent support for not compelling at all ; the notion that broadly expected small interest increases can cause hugely disruptive volatility-induced negative consequences on asset prices is not persuasive.

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