BlackRock global fixed income director Rick Rieder said the fed in no hurry to r
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BlackRock (Blackrock) (BLK.N) global chief investment officer for fixed income at Rick Rieder said on Tuesday that the Fed does not rush to raise interest rates, which create opportunities for risk assets, but a risk for long-term bonds.
Powell, President of the Federal Reserve of the United States Federal Reserve (FED/), promised on Tuesday that it would stick to a gradual increase in interest rates while preventing the economy from overheating. When Powell made testimony statements at the hearing held by the House Financial Services Committee, he acknowledged that the economy has increased recently, which prompted investors to increase the interest rate increase to four times this year.
Rieder said in the research report that the Federal Reserve has done a "respectable job", which is able to keep pace with the pace of inflation and "do not seem to be eager to raise interest rates".
This is good news for risky assets and short term investments, although the S & P 500 index.SPX fell 1.3% on Tuesday.
But Rieder says it's another story for long - term bonds. He said that the risk of increasing interest rates on long-term bonds has increased as the Fed resorted to non-traditional quantitative easing. On Tuesday, the price of us 30 - year bonds fell by 6/32 and the yield was reported to be 3.1629%.
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