PIMCO's Mather says he sees Fed talking in Oct, acting in Dec

PIMCO on the timing of liftoff

The co-manager of PIMCO's biggest fund said the Fed will probably talk about hiking in Oct and follow through in December.

"September is a very small probability" to raise rates Mather told Bloomberg. "They'll remind the market that they have meetings in between September and December, so there's a small probability they could do something there. Otherwise it's December."

If not for the market turmoil, they probably would have hiked next month, he said.

"They really, really wanted to move in September," Mather said. "They just probably feel like they can't now, because the world is a little too unsettled and too volatile. They don't want to be seen contributing to it."

The implied probability of a Sept 17 hike based on Fed funds contracts is about 24% today.