Paul McCulley

Don't look for the U.S Federal Reserve to increase short-term interest rates anytime soon. Paul McCulley, managing director of PIMCO, the world's largest bond fund, said the Fed won't increase borrowing costs before 2011, due to the threat of deflation. Key short-term interest rates will not rise...

To borrow a phrases from the late, great Jimi Hendrix, wrap your mind around this one: would you root for an "irresponsible" Fed? PIMCO's Managing Director Paul McCulley is doing exactly that. McCulley, in a PIMCO commentary, said that, if the U.S. economic recovery does not begin as expected in...