BlackRock’s Rieder thinks there will be no further Federal Reserve FOMC rate hikes

BlackRock’s chief investment officer in global fixed income Rick Rieder after the US jobs report on Friday:

• “The Fed should be done. You can put your shoulder behind a bit more of interest-rate exposure than has been the case certainly over the last few months.”

The data is here ICYMI:

• US August non-farm payrolls +187K vs +170K expected

Rieder says the Federal Open Market Committee (FOMC) can stop hiking now, although its set to hold rates high.

• “26 million jobs …” (created in the US over the past 3 years or so) ” is like adding an economy the size of Australia or Taiwan (including every man, woman, and child),”
• “Remarkably, 22 million people were hired between May 2020 and April 2022, and 11 million were added to the workforce from June 2021 to May 2023, as the economy has opened up massive amounts of roles for fulfillment,”
• expects wage pressures to ease
• should make the Fed feel more confident in “the permanence of lower levels of inflation,” so that it can slow or stop its interest-rate rises by year-end

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Earlier:

• ‘Fed Watch’ tool now shows more than 90% chance the FOMC remains on hold in September

This article was written by Eamonn Sheridan at www.forexlive.com. Source