BlackRock’s Rieder Says ‘Put Your Shoulder’ Into Bonds as Fed Rate Risk Recedes

‘The Fed should be done,’ he says as labor-market cools
Says outlook for rates gives market best buy signal in months

Rick Rieder, CIO of global fixed income at BlackRock, says the US August Jobs report can been seen as a “benchmark” for seeing slack build in the labor force. He speaks with Alix Steel on “Bloomberg The Open.”Source: Bloomberg

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By Liz Capo McCormick and Alix Steel

September 1, 2023 at 2:56 PM UTC

This article is for subscribers only.

BlackRock Inc.’s chief investment officer for global fixed income, Rick Rieder, said the cooling labor market supports speculation that the Federal Reserve is done raising rates, making bonds more appealing than they have been in months.

While US hiring picked up in August, the Labor Department’s report also showed that wage growth slowed and the unemployment rate jumped to the highest since February 2022, the month before the central bank started tightening monetary policy.