BlackRock’s CIO Rieder says the Fed Funds rate is too restrictive today, sees mid-24 cut

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
  • 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 Source