BlackRock Chief Investment Officer of Global Fixed Income Rick Rieder was interviewed on CNBC, some of his main points:

  • Inflation is coming down, the data is clear on inflation
  • The narrative of the economy falling off a cliff, that we're moving to a recession and the Feds have to start cutting, we are facing a cut in January ... is absurd. I don't believe we're going into a significant recession.
  • economy ... I think we are moderating from a period of extraordinary growth.We are normalizing from what is extraordinary monetary and fiscal policy and we are just normalizing. Next, year we've got real GDP running at about one and a half with inflation running about two and a half. that is a normal economy.
  • (Federal Reserve) I think they are done (hiking rates)
  • fund rate ... the real rate is too high
  • I think the Fed has got to start cutting
  • I think the market is ahead of itself in March ... that is over the top. But I think in May, June they'll start cutting ... start doing something like 25 basis cuts to get the real rate down to what is a level that, by the way, would be restrictive. It is too restrictive today.