NEW YORK, March 16 (Reuters) - The U.S. Federal Reserve
will likely raise rates by 25 basis point at its next
rate-setting meeting next week, but further signs of financial
sector instability could lead to a "hawkish" pause, said Daniel
Ivascyn, chief investment officer at Pacific Investment
Management Co (PIMCO).
"They're going to be watching signs of more instability
across the financial sector very carefully," Ivascyn told
Reuters. "There certainly are scenarios where they pause, it'll
likely be a hawkish pause if it's a pause, but our current
thinking is they go 25."
Fed funds futures on Thursday priced in a 25-basis point
hike by the Fed at next week's meeting, with inflation concerns
outweighing ongoing investor fears of a global banking crisis.
(Reporting by Davide Barbuscia)
Messaging: davide.barbuscia.reuters.com@reuters.net))
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