Rick Rieder is BlackRock’s chief funding officer of world fastened earnings.
Not too long ago he reiterated his name for 2 Federal Reserve fee cuts this 12 months:
Dow Jones / Market Watch (gated) carried remarks from Rieder on Tuesday forward of the Federal Open Market Committee (FOMC) assembly right this moment. In short:
- “core services inflation is just too high”
- How Powell addresses the potential for fee hikes to take care of sticky inflation will likely be essential, as a result of the market will doubtless react to that “big question,” Rieder instructed MarketWatch.
- Ought to Powell sound “hawkish” on Wednesday, the inventory market would most likely commerce down in opposition to the backdrop of a bounce in Treasury yields
- Rieder mentioned his sense is that Powell does not need to elevate charges additional.
- In Rieder’s view, the market has gone … too far in … in pondering the Fed may not lower charges in any respect in 2024.
“If the data allows them, I still think [the Fed would] like to get a cut or two in this year,” Rieder mentioned.
***
The Federal Open Market Committee (FOMC)’s coverage determination will likely be launched on Wednesday Could 1 at 2 pm US EDT (1800 GMT) with Fed Chair Jerome Powell following up along with his press convention at 2:30 pm (1830 GMT).
Earlier previews:
- FOMC meet this week: “the most interesting news about this meeting will come on 22 May”
- “Fed has simply run into a brick wall”
- expect a hawkish Fed and Powell
- Fed cuts are not imminent
This text was written by Eamonn Sheridan at www.forexlive.com.
