This tweet from PIMCO raises more questions than it answers, especially for runaway spening in the US:
The more I reread this, the more I think its possible to simply substitute ‘US’ for ‘Brazil’. US government spending is already epically unsustainable, Trump’s recent spending increases and tax cuts for the wealthy make it even more.
How about this:
- Although monetary and fiscal policy are usually viewed as distinct tools, outsize government spending can influence central bank actions. In the Latin America North America, Brazil the US maintains high interest rates amid significant government spending, even as other countries ease policy as inflation subsides.
A veiled waring from PIMCO to Trump?
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PIMCO (Pacific Investment Management Company) is a global investment management firm
- Founded in 1971, it is best known for its expertise in active fixed income investing, managing trillions in assets across bonds, credit, and macroeconomic strategies
- PIMCO serves a broad range of clients—including governments, institutions, and individuals—through a global team of portfolio managers, analysts, and economists
- The firm is a subsidiary of Allianz SE, one of the world’s largest financial services providers.
This article was written by Eamonn Sheridan at investinglive.com.
