Donald Trump’s ‘unpredictable’ policies to fuel multiyear shift from US, Pimco says - FT

Donald Trump’s “unpredictable” policies have prompted bond giant Pimco to diversify away from US assets, as Wall Street frets over the long-term consequences of the president’s attacks on the Federal Reserve.

“It’s important to appreciate that this is an administration that’s quite unpredictable,” Ivascyn said. “What are we doing about that? We’re diversifying . . . We do think we’re in a multiyear period of some diversification away from US assets.”

“Although on the surface it may be tempting to influence the Fed to bring rates lower . . . aggressive cutting in the face of strong growth and elevated inflation will likely lead to higher long-term rates.”

 Donald Trump’s ‘unpredictable’ policies to fuel multiyear shift from US, Pimco says