Expectations have risen for Rick Rieder, the chief investment officer of global fixed income at BlackRock, to be nominated as the next chairman of the Federal Reserve. BlackRock is a global investment management company that provides a range of investment and risk management services. It manages assets on behalf of institutions, intermediaries and individual investors.
In a January 2 note, Rieder stated that the inflation surge of recent years appears to be subsiding. However, he also noted that a softening labour market suggests a need to shift away from restrictive monetary policy towards a more balanced approach. His comments come as the market widely expects the Fed to begin easing its monetary policy in the coming months, due to the slowing economy and cooling inflation.
President Donald Trump, speaking at Davos this week, indicated he was nearing a decision on the next Fed chairman. He expressed interest in retaining Kevin Hassett in his current role, while also noting that Rieder had been “very impressive” during his interview. Hassett is currently Trump’s top economic advisor at the White House.
While Hassett was considered a leading candidate to succeed Jerome Powell, Trump recently stated his preference to keep Hassett in his existing position at the White House. This shift has further boosted speculation surrounding Rieder’s potential nomination, as the search for a new Fed chair intensifies.
