Rick Rieder, CEO of New York-based global investment company BlackRock, said the Fed may not need to raise interest rates in May because of last month's banking turmoil and labor market data showing a slowing U.S. economy.
According to Reuters, Rieder said that although the United States Department of Labor's employment report on Friday showed that U.S. employers kept a strong hiring pace last month, it was also marked by slowing wage gains and employment growth that remained below the 3, 6 and 12-month moving averages. Rieder thinks this data shows a slowing economy, with labor market data released last week and expectations of tighter credit conditions following the collapse of two U.S. banks last month.
“Last Friday’s employment report, while clearly not alarming in any way, allows investors to see more clearly through to what should be a tangibly slower set of economic conditions,” Rieder stated.
Rieder thinks inflation should fall going forward, in line with last month's economic slowdown. Rieder added that he hopes markets can look forward to a more relaxed Fed from now on.
