PIMCO

U.S. producer prices are rising as corporate margins absorb tariff costs. By contrast, producer prices keep falling in emerging markets (EM), reflecting weaker demand and limited pricing power. The split suggests U.S. inflation pressure could spill into consumer prices, while EM economies could find it easier to loosen monetary policy. #ChartingPerspectives

From humble beginnings in 2000, Clontarf Foundation has grown to become a fixture in communities across Australia. The organization engages Aboriginal and Tores Strait Islander youth in a program that encourages school attendance, retention, and completion. By providing guidance in both education and life skills, Clontarf prepares historically underserved youth with invaluable resources for a successful transition into employment and adulthood. Sam Watkins became involved with the organization in 2017, working with leadership to develop strategies for increasing reach. By maintaining his partnership, Sam continues to help break cycles of high unemployment and crime rates, allowing a growing number of young men to embrace a more disciplined, purposeful, and healthy way of life. *Photos courtesy of Clontarf Foundation

After trending higher over the past four decades, gross global savings have plunged – transforming the supply/demand balance for capital. This could challenge countries like the U.S. that rely on global savings to fund their large and persistent deficits. It could also affect the pace of private sector investment – a headwind countering the AI-driven tailwind. #ChartingPerspectives

The easing cycle has now resumed. Understanding Fed decision-making can help advisors guide portfolios with greater clarity as conditions unfold. In our latest episode of Accrued Interest, host Gregory Hall sits down with former Federal Reserve Vice Chairman and PIMCO Global Economic Advisor Dr. Richard Clarida. Together, they unpack the complex interplay of trade, labor market dynamics, and Fed independence discussions shaping monetary policy today. Tune in today. Listen on Spotify: https://pim.co/wv6gqco3 Listen on Apple Podcasts: https://pim.co/rwwjlyek

Public vs. private credit isn’t a simple either/or decision. Group CIO Dan Ivascyn explains why investors should consider liquidity and economic sensitivity across both markets and how that framework guides our allocation decisions. https://pim.co/d20b36gn

Fed Chair Powell said the 25-bp policy rate cut was about risk management. Our view: Labor market risks are rising, and the Fed is gradually moving toward a less restrictive stance. Economists Tiffany Wilding and Allison Boxer explain why we expect two more 25-bp cuts by the end of the year: https://pim.co/mv4f8h63

Could the Fed’s mortgage-backed securities (MBS) strategy be its most effective tool for easing housing pressures – without even touching rates? Reinvesting in mortgage-backed securities may compress spreads and lower mortgage rates, offering targeted relief for homebuyers. 📊Read our take. https://pim.co/xggimw5k

Trade theory suggests U.S. tariffs are inflationary at home but disinflationary for targeted economies. We see signs of that dynamic playing out. Similarly, the Taylor Rule – a formula for setting interest rates – indicates tariffs may narrow the Federal Reserve’s room to cut interest rates, while expanding the flexibility of other central banks. #ChartingPerspectives

See the world as opportunity. Group CIO Dan Ivascyn explains the valuation advantages in developed market fixed income, emerging markets, and even equities outside of the U.S, and why the alpha potential is plentiful. https://pim.co/5fdnje57

Group CIO Dan Ivascyn discusses why we’re leaning into asset-based lending, prioritizing high-quality assets, and treading cautiously in economically sensitive sectors. Watch now: https://pim.co/qnospa5v