Bloomberg Surveillance · Friday, July 17, 2026
Tiffany Wilding, North American Economist for PIMCO, highlights that Federal Reserve officials are communicating in a way that prepares markets for potential rate hikes if inflation does not moderate. This comes despite recent CPI and PPI data coming in below expectations and PIMCO's forecast for core inflation moderation. Wilding believes this suggests the Fed will remain on hold, but officials are signaling readiness to act.
“You know, Well, I. Think we're clearly focused on on how Federal Reserve official communication is evolving? You know. Obviously, we're also very close focused on on the data.”
“And I think there's an interesting, you know, sort of bifurcation that's happened because, on the one hand, you know, Federal Reserve officials you know, appear to be setting the markets up for potential rate hikes if inflation doesn't start. To moderate here, you know.”
“On the other hand, we got good news on the inflation data this week, both the CPI and the pp I coming in under expectations, you know, in our own forecast is is that you will see some moderation in core inflation, which is the important one for the Fed, you know.”