BlackRock’s Rick Rieder on the Fed’s next move and how he’s investing around it

Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, speaks during a Reuters investment summit in New York, November 7, 2019.

Lucas Jackson | Reuters

BlackRock’s Rick Rieder said the Federal Reserve should start talking about tapering its bond buying soon and is likely to start cutting back on its monthly purchases in the fourth quarter, possibly as early as October.

That is ahead of the view of some others on Wall Street, who expect the Fed to pare back bond purchases early next year. Fed economists do agree that the central bank could begin discussing cutting back on its quantitative easing program, or asset purchases, as soon as its June meeting.

The Fed is meeting this week and is not expected to take any action, though it is likely to acknowledge improvement in the economy. It is also not expected to discuss a timetable of paring back its bond purchases.

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