Rick Rieder, BlackRock Global Fixed Income CIO tells us how he would position investments for a no-landing scenario.
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
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As the United States economy continues to recover from the impact of the COVID-19 pandemic, there is increasing concern about the possibility of a recession fueled by rising interest rates. The Federal Reserve has been signaling its intention to raise interest rates in order to curb inflation, which has led many to question the potential impact on the economy.
The odds of a rates-fueled recession are a topic of much debate among economists and financial analysts. On one hand, some argue that the Federal Reserve’s rate hikes are necessary to combat runaway inflation, and that the impact on the overall economy will be manageable. They point to the strength of the labor market and consumer spending as evidence that the economy can withstand higher interest rates.
On the other hand, there are those who believe that the combination of higher interest rates and other economic headwinds, such as supply chain disruptions and geopolitical tensions, could tip the economy into a recession. They argue that higher borrowing costs could lead to decreased business investment and consumer spending, which could in turn lead to job losses and a contraction in economic activity.
One key factor that will determine the odds of a rates-fueled recession is the pace and magnitude of the Federal Reserve’s rate hikes. If the central bank moves too aggressively, it could potentially have a destabilizing effect on financial markets and the broader economy. However, if the Fed is able to navigate the delicate balance of raising rates without triggering a downturn, the odds of a rates-fueled recession may be lower.
Another important consideration is the response of other central banks around the world. If the Federal Reserve’s rate hikes lead to a stronger U.S. dollar, it could create challenges for emerging market economies and lead to global economic instability. This could in turn have ripple effects on the U.S. economy and increase the likelihood of a recession.
Ultimately, the odds of a rates-fueled recession depend on a wide range of factors, including the trajectory of inflation, the strength of the labor market, and the resilience of the broader economy. It is a complex and uncertain landscape, and predictions about the future are inherently challenging.
As investors and policymakers grapple with the potential risks of rising interest rates, it will be important to closely monitor economic data and indicators in order to assess the likelihood of a recession. Regardless of the outcome, it is clear that the Federal Reserve’s actions in the coming months will have far-reaching implications for the economy and financial markets.
"This time it's different"
This guy is brain dead this will age well
Looking at bond yield curve going back to the 1970's, it is clear that a recession follows after the inversion rights itself up.
Halfway through.
Services not affected by recession…
Now is a good time to buy stocks…
What is this guy smoking?
And why does BBerg suck so much?
Double digit rates are going to have to happen because of all the easy money last decade. I don't know how and why these guests keep saying they are going to cut rates next year lol
why cut rates if the economy is so good?
Is this guy delusional ? He is modelling the economy forecasts in excel and living in his crystal house.
I am just sitting for him to be red faced and swallowing his words in about 6 months from now or say Mar'24 latest
POE****
Airlines and home builders he said
This recession is most likely the result of an external factor. For the first time in decades, the United States is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.
My prediction: it won't be called a recession until the first day Trump takes office if he were to win. Which he won't. Because the elections are rigged.
this time it is different
this time it is different
Tech Sector is not affected by Interest Rates as its just the Augment of the Industry either Manufacturing or Services but on large scale to say Medium Enterprises Profitable with Cloud Computing Solutions to say the spending is inevitable with their Profits unaffected by Moderation of Interest Rates but the reshoring may affect the nature of Industry giving rise in Employment by its Services Arm in all of cities in USA.
I'm sorry but he's a joke. You lose all credibility when you say the yield curve is not a good signal of recession. What drugs are you on? White supremacy, thinking you're smarter than everyone else?!
"This time it's different Bro"
This joker works for Black Rock. Trust him? I think not!
What a Pair of Retards , dumber than a Box of Rocks
Shills !!!!
funny how they say the opposite thing in their letter to investors. disgusting leprechaun.
Every GOP President since Hoover has had a Recession ALL of THEM different weak excuse each time but ALWAYS a RECESSION ALWAYS
D bag central. Not David, he’s the man.
HES FROM BLACKROCK <<<<<>>>>> NEED I SAY MORE.
TRUST NO ONE.
Its a Dominos effect, energy cost propels inflation rate which will force the Fed to increase the rate hikes.