BlackRock's Rieder talks Fed rate cut expectations and the impact of restrictive monetary policy

US Equities (^GSPC, ^DJI, ^IXIC) are trading higher on Thursday as the market absorbs a cooler-than-expected reading on producer prices, easing investor concerns that the Fed may not begin cutting rates until later in the year. Some experts on Wall Street argue that it won't matter how or when the Fed will cut rates as the market remains resilient despite throttling from the Central Bank
BlackRock Global Fixed Income Chief Investment Officer Rick Rieder joins Market Domination to discuss the recent inflation data, Fed expectations, and the broader market.
Reider outlines the market's initial reaction to PPI data: "I think the markets took a deep breath on today's report and got some satisfaction...Yesterday's report was concerning for the market. It's interesting, when you actually take PPI, it's a big component into what gets into the Fed's thinking around core PCE and this gives you a bit of comfort around those numbers which we think are going to settle in around the 2.6, 2.7 percent level for core PCE. So I think part of why the equity market has gotten a bit of relief today is on the backside of it. The rest of the data: yesterday's CPI was concerning, but it's really the service sector that's really seeing this sort of level inflation, which is hard for the Fed to bring down, and a question of how much they will fight that over the coming months. "
The BlackRock CIO adds that he doesn't buy claims that the Fed could have hiked interest rates even more: "I don't think the Fed can do much on the service sector of the economy that is not terribly cyclical. What it does is creates a pernicious impact on parts of the economy, talking about small business, local banks, et cetera. It's a question of how much do you want a skewed, distorted economy to try to get at something that's very difficult to get at. "
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[@mscolli3]

Yes we can all take comfort in the fudged numbers.

[@brycecounts3168]

These criminals should be in jail.

[@33Treez]

Nows the time $EPIKO bam!

[@PC-cs5wp]

Im pretty sure these folks have an investment in how well the economy does?? Hence they all say the same thing.."......