Power Lunch

Monday - Friday, 2:00 - 3:00 PM ET
Power Lunch

PIMCO CIO: Rate hike "off the table" today

Federal Reserve Chair Janet Yellen speaks at the University of Massachusetts in Amherst, Massachusetts on Sept. 24, 2015.
Mary Schwalm | Reuters

The Federal Open Market Committee concludes its two-day monetary policy meeting Wednesday and is scheduled to release its statement at 2 p.m., ET.

Most expect the central bank to keep rates unchanged, including bond fund giant, PIMCO

Scott Mather, PIMCO's CIO of core strategies, told CNBC's "Power Lunch" on Wednesday he believed a move Wednesday was certainly "off the table."

The goal of today's meeting, said Mather, is simply to keep alive December expectations.

"We see a greater than 50 percent odds of a December lift-off," said Mather. "Financial conditions have eased considerably since the last meeting and international growth and spillover concerns have diminished. In addition, the dark cloud of a possible government shutdown has been pushed out to sea with the likelihood of slightly more fiscal stimulus over the next two years."

The recent recovery of the equity markets over the past few weeks along with lower credit spreads, is yet another reason Mather is keeping December in the cross-hairs.

"Looking ahead, what's critical will be the next two employment reports as well as indications on wages," said Mather. "Plus we still expect inflation rebound as we enter 2016. So the Fed should be much closer to neutral than still at the "emergency lower bound" of rate setting."