Rick Rieder, chief investment officer of global fixed income and head of the global allocation investment team at BlackRock, the world's largest asset manager, spoke in a phone interview with Dow Jones / Market Watch.
On the upcoming Federal Open Market Committee (FOMC) statement due later Wednesday:
- "I still think Powell is going to suggest that they can still move, and give some sense that June is a likely time frame to start,"
- Powell (is) ... "so far from equilibrium," or a normalized rate, after tightening monetary policy to battle inflation.
- Projections for only two rate cuts in 2024 could lead to a knee-jerk reaction of disappointment in markets, according to Rieder, who estimated a 25% to 30% chance of the Fed signaling such a forecast.
- Rieder said he's also keeping "a keen eye" on what the summary of economic projections will show about the longer-run fed-funds rate, which has been estimated at 2.5% in past forecasts. "There is a reasonable chance that notches higher," he said, which would "signal higher interest rates for a longer period of time."
Bolding above is mine.
More at that link.
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