BlackRock’s Rieder Says Cut, Not Hike, to Tame US Inflation

Goods disinflation is pushing activity into services: Rieder
Still, ‘worst fears were allayed’ with release of April CPI

Rick Rieder, chief investment officer of global fixed income at BlackRock Inc., makes the case for the Federal Reserve to cut rates to tame inflation because Americans are earning more than they have in years from their fixed-income investments. He joins David Westin on “Wall Street Week.”Source: Bloomberg

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By Carter Johnson

May 17, 2024 at 10:00 AM UTC

Updated on

May 17, 2024 at 3:07 PM UTC

This article is for subscribers only.

BlackRock Inc.’s Rick Rieder has some advice that bucks conventional wisdom: The best way for the Federal Reserve to temper inflation will be to lower rates, not hold them higher.

That’s because well-heeled Americans are earning more than they have in years from fixed-income investments, given that benchmark rates remain on hold at their highest level in a generation, according to Rieder, BlackRock’s chief investment officer of global fixed income.