NEW YORK, NY, Tuesday, February 27, 2024 – BlackRock, the world’s largest asset manager, projects moderate real GDP growth of 1.5-2% for the United States in 2024, according to comments made by Rick Rieder, the firm’s Chief Investment Officer (CIO), on CNBC’s “Closing Bell” program on February 15. 1
Rieder acknowledged market concerns surrounding recent inflation data but expressed confidence that the Federal Reserve would remain patient and avoid an overly aggressive response. He noted the stickiness of service-related inflation but believes the overall trend is downward.
“We’ve got to watch the inflation numbers from here,” Rieder said.
“But if you take the long-term trend, inflation is coming down.”
However, he downplayed recent economic data fluctuations, attributing them to a potential “outbreak of normality” after pandemic-induced disruptions.
“The Atlanta Fed number is a snapshot. It still looks good,” Rieder stated, referring to their GDP growth estimate for the first quarter.
“So I still think you have a good economy.”
Rieder anticipates the Fed initiating rate cuts in the second half of 2024, following an expected 75 basis point hike in total for the year. He believes the 10-year Treasury yield has likely settled around 4%, aligning with historical patterns linked to nominal GDP.
“I think the 10 years found its home,” Rieder said.
- BlackRock: https://www.cnbc.com/video/2024/02/15/short-the-bond-king-rick-rieder-expects-1-point-5-2-percent-real-growth-this-year.html[↩]
