BlackRock Chief Investment Officer of Global Fixed Income Rick Rieder was interviewed on CNBC, some of his main points:
- Inflation is coming down, the data is clear on inflation
- The narrative of the
economy falling off a cliff, that we’re moving to a recession and the Feds have to start cutting, we are facing a cut in January … is absurd. I don’t believe
we’re going into a significant recession. - economy … I think we are moderating from a period of extraordinary growth.We are normalizing
from what is extraordinary monetary and fiscal policy and we are just
normalizing. Next, year we’ve
got real GDP running at about one and a half with inflation running
about two and a half. that is a normal economy. - (Federal Reserve) I think they
are done (hiking rates) - fund rate … the real rate is too
high - I think the Fed has got to start cutting
- I think the market is
ahead of itself in March … that is over the top. But I think in May, June they’ll start cutting … start
doing something like 25 basis cuts to get the real rate down to what
is a level that, by the way, would be restrictive. It is too
restrictive today.
This article was written by Eamonn Sheridan at www.forexlive.com. Source