With all eyes on the Federal Reserve Wednesday, Pimco's Scott Mather said he's staying focused on the central bank's ongoing policy normalization and the divergence between the Fed and its counterparts around the world.
The Fed's statement at the end of its two-day meeting Wednesday offered no changes to its zero interest rate policy. All calendar references in regard to when it may begin to raise rates also were removed.
Mather expects those rate hikes to start this summer, likely late or in September. That's at odds with the quantitative easing happening globally.
"That means that one has to be a little bit more careful when taking bond risk in the U.S. It's one of the reasons we're underweight U.S. duration and look for other ways to take bond risk and earn additional yield in the portfolio," Pimco's chief investment officer of U.S. core strategies said in an interview with "Power Lunch."