Your Survival Guy writes for those who’ve saved ‘til it hurts, worked for as long as they could, and now want some return on their money. The last thing I want to see is the Fed cutting rates just when we got to a point where we can sink our teeth into these yields. And yet Wall Street yearns, as it always does, for rate cuts. Brian Sozzi reports for Yahoo! Finance:
Get to steppin’….with lower interest rates.
The Fed needs to drop the hammer on rates at its September meeting to reignite growth and relieve debt pressure on consumers, says BlackRock’s chief investment officer of global fixed income Rick Rieder.
“I would do 50 [basis point rate cut],” Rieder said on the Opening Bid podcast Wednesday (see the video above or listen in below).
Rieder — a power player in global markets who usually starts his trading day at 3 am — fancies the Fed may end up cutting rates in 25 basis point increments at a series of meetings extending into 2025.
But doing so would risk elongating the pressure Rieder is seeing in the mountains of data he studies.
“I was looking yesterday at credit card delinquencies or charge-offs, auto loan delinquencies, like you’re starting to see numbers that approach financial crisis. We’re not there yet, but you’re starting to see this significant increase,” Rieder warned.
Action Line: It’s a good time to go over your bond portfolio. If you need help, I’m here. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
