Rick Rieder is BlackRock CIO of Global Fixed Income. Snippet from a piece in Market Watch on his expectations for the Fed.
- Trump tariffs so far haven’t flowed into U.S. inflation data in a big way
- Federal Reserve will maintain its wait-and-see approach on interest rates
- Over the next two months, the Fed may get a “very good reading” on the impact of tariffs on inflation
- companies have been absorbing the levies, may soon face a decision on whether to start passing them through to consumers
- along with some further “softening” in the labor market, could set the Fed up to potentially cut its benchmark rate at its policy meeting in September
- said the Fed could be thinking about when to stop its quantitative-tightening program, or the shrinking of its balance sheet, after deciding in March to slow the pace of QT
- “There is no reason why you wouldn’t just end QT”
The Federal Open Market Committee (FOMC) statement is due on Wednesday, June 18, 2025 at 1800 GMT, 1400 US Eastern time.
Federal Reserve Chair Powell’s news conference will begin a half hour later.
This article was written by Eamonn Sheridan at www.forexlive.com.
