CNBC with the report (gated) on an interview with BlackRock’s chief investment officer of global fixed income Rick Rieder.
In brief:
- “My sense is that this will be the last hike and the Fed will let this rate policy marinate through the system to create a slowdown,”
- Current uncertainty in the banking sector will continue to play a role in dampening the U.S. economy such that the Fed may be able to stop raising rates sooner than it otherwise would have
- while inflation is still a problem, it’s been coming down
- wage inflation remains stubbornly high. “You still have sticky employment and sticky wages, so my sense is the Fed will be focused on those issues”
- also doesn’t think the economy has slowed to a point that would appease the Fed. “I don’t think there’s tangible pressure on the U.S. economy”
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Earlier:
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The Federal Open Market Committee (FOMC) announcement is due on Wednesday, 3 May 2023 at 1800 GMT (2pm US Eastern time), with Federal Reserve Chair Powell's press conference following a half hour later.
