Fed wants to raise rates ‘as much as twice more this year’
Fund manager says market expectation of a rate cut is a bit extreme
New York — The Federal Reserve wants to raise interest rates one to two more times in 2019 and will do so if inflation gathers steam, BlackRock's Rick Rieder told reporters. Rieder, who is chief investment officer of global fixed income for the world's largest fund manager, said markets expect the Fed’s next move on rates will be to cut them. Many investors are predicting a recession by 2020 with limited basis for such a claim, he said. “The Fed would still like to get a hike or two done,” according to Rieder. “The markets’ interpretation is a bit extreme.” Rieder’s views about the Fed and financial markets are widely followed. BlackRock managed $5.98-trillion as of the end of 2018, with a third of that in bonds. Rieder also sits on the New York Fed’s investor advisory committee on financial markets. In a sharp reversal of his stance in December, Fed chair Jerome Powell said last week that the Fed has “the luxury of patience” in deciding whether to raise rates again. Futures tied to...
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