Interest Rate Cuts Unlikely Anytime Soon, Says BlackRock Executive
While traders continue to bet on multiple interest rate cuts this year, BlackRock’s fixed income chief Rick Rieder sees a different path unfolding.
In a recent interview, Rieder pushed back against the notion that the Federal Reserve is preparing to ease aggressively. Despite recent signs of cooling in some economic indicators, he argues that the data doesn’t yet support the kind of monetary pivot the market is hoping for.
“Inflation is still running hot enough, and the labor market remains fairly resilient,” Rieder explained, noting that core CPI holding around 3% isn’t enough to justify immediate easing. He believes the central bank will likely stay cautious and wait for clearer signs before making a move.
Rieder also described current financial conditions as unusually active, calling it “one of the best trading setups in recent years,” but warned that emotion is playing a large role in driving the rally. He advised investors to stay exposed but consider downside protection strategies, suggesting that market exuberance could easily reverse.
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Although he doesn’t rule out a cut later in the year—possibly by or after the Fed’s June meeting—he made it clear that the jobs data released this week doesn’t give policymakers the green light just yet.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
