The messages coming out of the June FOMC (Federal Open Market Committee) meeting have not dramatically changed PIMCO’s outlook for Federal Reserve policy: Over the coming months, we expect the Fed’s focus will continue to shift from one of crisis management to one of keeping financial conditions easy. And as its objective shifts, the Fed will likely provide additional, more tangible, guidance on the path of monetary policy, including the path of interest rates and asset purchases. A yield curve targeting policy later this year is a distinct possibility. According to the June summary of economic projections (SEP), the ... (full story)