Pacific Investment Management Company (PIMCO) is a US firm that manages circa US$1.9 trillion in assets.
In a piece from Marc Seidner, the firm's chief investment officer for non-traditional strategies in Pimco's New York office, generalist portfolio manager, and a member of the investment committee.
The gist of his argument is:
- We think upward pressure on inflation is likely to be relatively contained as the global economy continues to recover from the effects of COVID-19, and that yields on longer-dated bonds should stay broadly bounded within recent ranges as central banks keep short-term policy rates anchored near zero.
- we don't see a substantial risk of a rapid acceleration in inflation, particularly in the near term. There are still several potent forces in place that could curb wage gains and keep inflation in check, even as the Federal Reserve and other central banks maintain low rates and bond-buying programs, and as the U.S. government expands fiscal stimulus spending.
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