Experts Predict Fed's Next Move on Interest Rates and Inflation

Former PIMCO chief economist Paul McCulley predicts that the Federal Reserve will stop hiking interest rates next month, unless there is a surprise jump in inflation. He believes mounting economic pressures will convince the Fed to pause and pivot later this year. McCulley's forecast is at odds with recent estimates from CME Group, which show a 73% chance of a quarter point interest rate hike in May. He sees a temporary disconnect between the economic community and the marketplace, and notes that a pivot could come even without a recession, setting up a healthier market.