David Rolley, bond portfolio fund manager...>

US VIEW: David Rolley, bond portfolio fund manager at Loomis Sayles & Co., said

that "we do not think that the Fed has to do much more" tightening. "It won't

upset any applecarts" if the Fed tightens rates 25 bps next week at its Tues-Wed

FOMC meeting, as it's widely expected, he added. 

- "The goal of the Fed's interest rate movement is to get to the neutral

interest rate" and thus to tamp down inflation, he added. He noted the Fed has

"300 people who are paid to work watching economic conditions" and projected the

Fed will be wanting to get to its neutral interest rate around 2.5% to 3.0%

without upsetting the markets. 

- "If they manage that, that will be the first soft landing in American

history," he added. "So, let's wish them well. The odds are not in their favor."

- He added that the market has had a long period of unusually low US interest

rates. "But no one should build a business model or business on a 0% interest

rate," he added. Asked by MNI if he feared the Fed might over-tighten, he did

not seem to think that was the danger, as he said the rate hike process has been

"glacially" slow so they could be "behind the curve."