BlackRock’s Rieder Sees July as Likely for Rate Hike

BlackRock's Rieder: Data Downtrend Makes Fed Hike Harder
  • Central bankers may wait until after June Brexit vote
  • Rieder speaks after FOMC meeting shows support for June move

Rick Rieder, chief investment officer of global fixed income at BlackRock Inc., said July is a better bet than June for the next interest-rate hike from the Federal Reserve.

“I think June will be hard,” Rieder said in an interview Thursday on Bloomberg Television. “I think July is a likely candidate.”

Rieder spoke a day after the release of minutes from the most recent meeting of the Federal Open Market Committee, which sets rates. Most officials at the gathering said that a move in June would be warranted if economic data indicate stronger growth and inflation. Two-year yields jumped to the highest since March as traders boosted the probability of a June increase to 32 percent, up from just 4 percent at the start of the week.

By waiting until July, said Rieder, the Fed would be able to see one more U.S. monthly jobs report and would know the outcome of the June 23 referendum in which Britain will decide whether to remain a member of the European Union.

Rieder, making the case for a rate hike, said recent U.S. economic data has been encouraging. “It’s a pretty good economy and global financial conditions are not as stressed as they were,” he said.

New York-based BlackRock is the world’s largest asset manager.

(Corrects spelling of Rieder’s name in headline.)
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