Pimco believes that the credibility of the Federal Reserve is intact and that U.S. Treasury yields are attractive.

Pimco stated that the market's concerns over the Federal Reserve's credibility in combating inflation have been overblown, and the current level of U.S. Treasury yields appears attractive. Marc Seidner, the company's Chief Investment Officer for Non-Traditional Strategies, expects the Federal Reserve to keep interest rates unchanged this year, even though the market anticipates a 50% probability that the Fed will raise rates by 25 basis points at its next meeting. He pointed out that inflation and economic growth momentum are slowing, and the fundamentals show weak performance. However, as fiscal pressures exert pressure on long-term U.S. Treasuries, the yield curve may steepen. "Recent discussions and narratives surrounding the Federal Reserve are filled with very strong emotions," he said in an interview with Bloomberg Television. "This actually has no basis. I believe the Federal Reserve is credible."