Contrary to popular consensus that the Federal Reserve should be holding or even raising rates, BlackRock chief investment officer of fixed income Rick Rieder told Yahoo Finance he believes the Fed should move toward cuts.<\/p>\n
“I think they’ve got to move toward lowering [interest rates],” Rieder said. “When you look at \u2026 the areas that the interest rate affects [such as housing], I think they should be cutting over time.”<\/p>\n
Rieder’s comments come as newly minted chairman Kevin Warsh is set to helm his first Fed meeting, with a decision to come on Wednesday. Traders are nearly unanimously expecting the committee to hold rates steady, at a rate of 3.5% to 3.75%, tomorrow.<\/p>\n
However, the market is now pricing in at least one quarter-point hike by the end of the year, driven by the effects of the war in Iran on inflation via an energy shock. May’s consumer price index showed that prices advanced on a year-on-year basis at their fastest rate since 2023.<\/p>\n
With a deal signed, the economy may be moving past those problems, Rieder told Yahoo Finance.<\/p>\n
“Now that you’re getting to the other side of a fiscal tailwind, we think [in] the economy, you’re going to see some moderation,” Rieder said, noting that the call includes moderating inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"Contrary to popular consensus that the Federal Reserve should be holding or even raising rates, BlackRock chief investment…\n","protected":false},"author":3,"featured_media":874091,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[6],"tags":[185234,64,355365,75621,355366,74053,20681,67,132,68],"class_list":["post-874090","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alan-greenspan","tag-business","tag-federal-open-markets-committee","tag-kevin-warsh","tag-productivity-growth","tag-the-federal-reserve","tag-unanimous-decision","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116766895527963547","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/874090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=874090"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/874090\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/874091"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=874090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=874090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=874090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}