Pimco economist Tiffany Wilding described the latest core consumer price index reading as “pretty confusing,” and said the Federal Reserve appears comfortable pausing its interest rate cuts. The CPI data, released Thursday, showed mixed signals: underlying inflation stayed above the 2% target while some components slipped, leaving markets unsure how to interpret the trend. Wilding’s view reflects a broader sentiment among bond managers that the Fed may hold rates steady after a series of aggressive hikes that began in 2022 to curb post‑pandemic price pressures.

Investors have been watching for a clear break in inflation before betting on further easing. If the central bank indeed steps back, borrowing costs could stabilize, supporting equities and housing markets that have felt the strain of higher rates. Yet analysts warn that any resurgence in price growth could reignite the push for tighter policy.

The next CPI release will test whether today’s “confusing” numbers were a blip or a sign of deeper volatility.