Pimco Forecasts Fed Rate Cuts This Year But More Gradual US Easing Due to Strong Growth, Stickier Inflation

• Fed likely to start cutting interest rates midyear, but easing will be more gradual in U.S. than other developed markets • Pimco favors bonds in Australia, Canada, UK where inflation risks are lower • Factors supporting strong relative U.S. growth also likely to contribute to stickier inflation • Pimco expects a "soft landing" for U.S. economy, but risks of recession or persistent inflation still elevated • In credit markets, Pimco prefers high-rated corporate debt and U.S. agency mortgage-backed securities