BlackRock's Reider says US rates too high - "Fed Funds rate remains far too restrictive"

[Nighthawk]

Rick Rieder is BlackRock CIO of Global Fixed Income

Anyway, back to Reider:

• revisions in payrolls at -818k since March 2023 comes in addition to 778k jobs being revised away since Feb 2022
• This magnitude of preliminary revisions helps to validate some of the concern around the weakness in the labor market in recent months.
• Ultimately, today’s report highlights the importance of the labor portion of the Fed’s dual mandate and codifies the fact that the Fed Funds rate remains far too restrictive amidst slowing inflation and a moderating economy.

https://www.forexlive.com/centralba...ds-rate-remains-far-too-restrictive-20240821/

 

[S2007S]

Every single day I listen to cnbc there isn't one segment where the question of rate cuts does not come up, it's gotten quite pathetic the amount of begging and pushing for the idea of rate cuts is wanted so heavily on wallstreet. They believe rates should have been at 0% forever...once again there is absolutely zero reasons for rates to be lower than where they are now, in fact the fed would be doing us a favor by actually keeping them at 5% for the next decade as historically 5 % rates are actually considered historically low!!!!!

 

[S2007S]

HMMMMMMMMMMMMMMM

revisions in payrolls at -818k since March 2023 comes in addition to 778k jobs being revised away since Feb 2022

This magnitude of preliminary revisions helps to validate some of the concern around the weakness in the labor market in recent months.


So let's see, they are now concerned that the job numbers were actual lies and that we now have "weakness" in the job numbers????
So let me say this, how do we know that every CPI and PPI data point from the last 12 months is correct. Maybe CPI is actually being mis calculated like the job numbers were and its actually sitting around 5.5% and not the 3% they claim.....

 

[S2007S]

They want rates at 0% so they can keep wallstreet and equities juiced up. Just another asset bubble in the making. I hope the fed bows again to wallstreet and drops rates to exactly where they want them (0%) and inflation picks back up surging once again to 6 % 7% 8% ...would be absolutely lovely. If I was the fed I would say here is your 0% fed funds rate and walk away, let the markets have their cheers and once again free money as all they ever want is cheap rates and plenty of monopoly money!

 

[Scataphagos]

Every single day I listen to cnbc there isn't one segment where the question of rate cuts does not come up, it's gotten quite pathetic the amount of begging and pushing for the idea of rate cuts is wanted so heavily on wallstreet. They believe rates should have been at 0% forever...once again there is absolutely zero reasons for rates to be lower than where they are now, in fact the fed would be doing us a favor by actually keeping them at 5% for the next decade as historically 5 % rates are actually considered historically low!!!!!

Blackrock and all of Wall Street want low rates and easy money... to fuel market rally in perpetuity*. INFLATION BE DAMNED!!

*Seems nobody wants to consider the downside

 

[notagain]

Lower rates would inflate housing prices.
BlackRock wants to weaken the US identity and cultural cohesion.
Foreigners are buying every overpriced home in the Washington D.C. area.
The US is literally selling itself out.

 

[wxytrader]

Every single day I listen to cnbc there isn't one segment where the question of rate cuts does not come up, it's gotten quite pathetic the amount of begging and pushing for the idea of rate cuts is wanted so heavily on wallstreet. They believe rates should have been at 0% forever...once again there is absolutely zero reasons for rates to be lower than where they are now, in fact the fed would be doing us a favor by actually keeping them at 5% for the next decade as historically 5 % rates are actually considered historically low!!!!!

You aren't allowing for inflation...back in the 80s interest rates hit 22.75% but the average mortgage was probably less than 100k...yes it was a strain on people but 22.75% now would create a zombie apocalypse.

So if you want to compare rates then you must normalize cost of living. If the average rates were about 9% in the 80s, and wages have basically doubled since then , that would make on par rates about 4.5%...but if you factor in the cost of housing I would think around 3.5-4% is closer.