Bloomberg Surveillance · Friday, September 11, 2026
Tiffany Wilding of PIMCO anticipates the Federal Reserve will hike interest rates as a risk management measure to combat inflation expectations, despite not seeing labor markets as a significant inflationary pressure. She believes these hikes are necessary to maintain credibility, especially given the ongoing series of supply shocks affecting the global economy.
“So I think hikes here to really ensure that credibility you know, makes a lot of sense to us. You know, but the last point I would just make on this is that, you know, we don't think we're in a 2022 type of environment. You know, that is a very different environment than we are now. Labor markets were much tighter then. We aren't seeing labor markets as a source of inflationary pressures. You know, so we really view these hikes as risk management hikes here.”
“Central banks, not only the Fed in the U.S., but elsewhere, they are worried about the risk that inflation expectations start to drift higher. So I think hikes here to really ensure that credibility you know, makes a lot of sense to us.”