A note from Rick Rieder, chief investment officer of global fixed income at BlackRock, the world’s largest asset manager. Info via Reuters report:
- Fed could raise interest rates to 6%
- and keep them there for an extended period of time
This follows Powell speaking on Tuesday US time:
Rieder:
- "We think there’s a reasonable chance that the Fed will have to bring the Fed Funds rate to 6%, and then keep it there for an extended period to slow the economy and get inflation down to near 2%,"
The Reuters report also adds:
- Goldman Sachs said in a note on Tuesday that it had raised its forecast for the so-called terminal rate by 25 basis points to a range of 5.5%-5.75%.
(GS have added in a +25bp hike in July to its forecast to take their terminal rate projection higher).
--
The Federal Open Market Committee (FOMC) meet on March 21 to 22.
