Investing.com -- The Federal Reserve might have more interest rate increases in its back pocket, according to Pimco's global economic advisor.
Richard Clarida, Pimco managing director and former Fed vice chair, told Bloomberg television on Tuesday that the economic data has been coming in stronger as the Fed prepares to meet next week. "We could get an additional hike or two in this cycle," he told Bloomberg.
"It's a closer call than I would have thought several months ago."
Futures markets have been putting the probability of a Fed pause next week around 77%, but there are still expectations the Fed will resume with a rate increase in July. Clarida tossed cold water on expectations that the Fed could start cutting rates later this year.
"I think the bar for rate cuts the rest of this calendar year is very high," he told Bloomberg. "I do think if there are cuts, it's really a 2024 story."