Rick Reider is BlackRock's global fixed income CIO & PM, BlackRock is a multi-trillion fund manager ($8.67 trillion in assets under management as of January 2021)
In summary of his arguments, he says
- its likely we'll see some elevated inflation prints in the coming months
- growth will be strong
- over the intermediate-term the Fed is correct in thinking inflation will remain muted (Reider cites "the same factors that have held sway in recent decades: population aging and tech disinflation)
However ...
- while we don't expect the Fed to make a policy adjustment anytime soon, at some point the financial stability risks that emanate from an extremely low policy rate, coupled with the real economy boom that we expect, could, in fact, force the Fed's hand.
