BlackRock: Expecting the Fed to cut interest rates in March is premature
According to a report by Jin10, Rick Rieder, Chief Investment Officer of BlackRock Global Fixed Income, said that the market's expectation of the Federal Reserve starting rate cuts in March may be too early. As US Treasury bonds are being sold off across the board, Rieder stated, "I think today's tightening is somewhat reasonable." The market trend reflects that Powell does not intend to start rate cuts "so quickly and aggressively." Rieder expressed surprise at Powell's dovish tone at the FOMC meeting. He mentioned that he is underweighting the short end of the yield curve and sees potential in the middle section when the Fed actually starts shifting. The significant decline in long-term US Treasury bond yields has been surprising. Reider stated, "The demand for longer-term bonds has always been one of the strangest things I have seen." Historically speaking, a slightly higher than 4% yield on 30-year Treasury bonds is "not so attractive" and includes "duration risk" when short-term yields are higher.
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