On April 11, Rick Rieder, chief investment officer of BlackRock’s global fixed income department, said that the Federal Reserve may not need to raise interest rates further to fight inflation, because the aftermath of last month’s banking turmoil and a series of recent data show that the U.S. economy is weakening. slow down.
While Friday’s closely watched U.S. Labor Department employment report showed U.S. employers maintained a strong pace of hiring last month, wage growth slowed and job growth was below its three-, six- and 12-month moving averages.
The data, combined with expectations of tighter credit conditions following the collapse of two U.S. banks last month, paint a picture of a slowing economy.
It will also mean that the Fed will stop raising interest rates after a possible rate increase at the May meeting, and the Fed may have finished raising interest rates.
Inflation should ease further as the economy slowed last month.