BlackRock bond chief Rieder says U.S. economy in ‘much better shape’ than doomsayers say

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Rick Ryder, BlackRock’s chief investment officer for global fixed income, speaks during the Reuters Investment Summit in New York on November 7, 2019.

Lucas Jackson | reuters

NEW YORK – When the Bond major was the world’s largest asset manager Looks at America right now, he sees a lot to like.

A combination of flexible government, corporate and consumer spending, improving homebuilder data, $1.5 trillion in additional savings and low unemployment tells BlackRock rick ryder That the US economy is performing better than many expected.

“I think the American economy is in a lot better shape than people give us credit for,” Ryder said Tuesday. in a function at BlackRock’s New York headquarters.

“The thesis is that you will have a dramatic recession,” he said. “When you break down the numbers, it’s not clear.”

talk about an imminent recession The effect of the Federal Reserve’s interest rate hike is building up through the economy. The collapse of three medium-sized banks this year has raised concerns that lenders will clamp down on access to credit, further slowing the economy. Still, jobs data confounds most expectations recently for April, when non-farm payrolls increased by 253,000.

“When people talk about, ‘We’re heading into a recession or a deep recession,’ it’s very unusual [or] Almost impossible when you have an unemployment rate of 3.4%,” Ryder said.

lots of cash dumped

Rieder, a three-decade market veteran who oversees $2.4 trillion in assets, said he expects the Fed Stop The rate goes up in its next meeting. While the central bank could raise rates once again after that, he said its rate-hike campaign is largely over.

Ridder said that expectation, combined with slowing inflation, gives investors a good backdrop, even as he expects the economy to slow later this year.

The biggest threat to Reeder’s thesis is a possible US default on its sovereign debt, which could trigger panic and “potentially” could happen. Offensive“For the economy, according to experts including JPMorgan Chase CEO Jamie Dimon, Treasury Secretary Janet Yellen has Said That America may lose the ability to pay its bills as early as June 1st.

He said Reeder is “very likely” to strike a deal with Republican lawmakers from the Biden administration.

“I’ve never seen so much money in cash, and so much of it” waiting for a credit limit resolution Before being deployed, he said.