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Why you shouldn't worry about rate hikes next year

BlackRock executive Rick Rieder doesn't think the Federal Reserve is going to raise rates much next year.Riede...

Posted: May 31, 2018 4:57 AM
Updated: May 31, 2018 4:57 AM

BlackRock executive Rick Rieder doesn't think the Federal Reserve is going to raise rates much next year.

Rieder believes the Fed will raise interest rates three or four times this year. Although most analysts predict the Fed will raise rates another four times in 2019, Rieder said he'd "cut that number."

"We are going to be in a low rate environment for a long time," he told CNNMoney anchor Maggie Lake on "Markets Now" on Wednesday.

"I don't think the Fed's going that far, after they get through the moves they're going to do this year," said Rieder, a managing director and the global chief investment officer of fixed income for BlackRock.

He does think that the Fed will raise rates as inflation ticks up, but Rieder said that a strengthening dollar, among other factors, could keep the Fed from raising rates too often.

The projection has made him confident that a short-term investment in US Treasury bonds is a good bet. Investors who focus on two-year treasury yields, he said, "can sleep at night."

"For the first time in a while you're getting some real income from it."

And US government bonds remain a good investment compared to other countries' debt. "The European Central Bank can't do a lot, the Bank of Japan, they're not creating enough inflation ... so it's hard for our US interest rates to move significantly higher."

Related: Watch 'Markets Now' here every Wednesday at 12:45 p.m. ET

CNNMoney's "Markets Now" streams live from the New York Stock Exchange every Wednesday at 12:45 p.m. ET. Hosted by Lake and CNNMoney editor-at-large Richard Quest, the 15-minute long program features incisive commentary from experts. Recent guests include former Chrysler and Home Depot CEO Bob Nardelli and Bitcoin bull Mike Novogratz.

On Wednesday, CNNMoney's Paul R. La Monica also discussed Disney's performance following ABC's cancellation of "Roseanne." The company's stock slumped about 7% this year.

So far, he said, the decision has not moved the needle for Disney. Disappointing "Solo" sales and other concerns have dragged shares down.

You can watch "Markets Now" at CNNMoney.com/MarketsNow from your desk or on your phone or tablet. If you can't catch the show live, check out highlights online and through the Markets Now newsletter, delivered to your inbox every afternoon.

- CNN's Alanna Petroff, Donna Borak and Nathaniel Meyersohn contributed to this report.

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 708779

Reported Deaths: 13226
CountyCasesDeaths
Marion966191721
Lake51761946
Allen39224672
Hamilton34549405
St. Joseph34157541
Elkhart27356432
Vanderburgh22081394
Tippecanoe21853212
Porter17935299
Johnson17544374
Hendricks16822310
Clark12697190
Madison12353337
Vigo12219244
Monroe11469166
LaPorte11162204
Delaware10366184
Howard9664211
Kosciusko9134114
Hancock7990139
Bartholomew7893155
Warrick7691155
Floyd7563176
Wayne6906198
Grant6844171
Boone6556100
Morgan6405138
Dubois6085117
Marshall5786108
Dearborn570376
Cass5685102
Henry5579101
Noble542683
Jackson493569
Shelby479495
Lawrence4342118
Gibson429089
Harrison428570
Clinton419753
Montgomery418086
DeKalb411184
Whitley380239
Huntington379880
Miami372865
Knox366689
Steuben365757
Putnam353160
Jasper350946
Wabash347878
Adams338052
Ripley334668
Jefferson313180
White308454
Daviess289499
Wells286481
Decatur279092
Fayette277262
Greene270785
Posey268833
Scott261153
LaGrange253670
Clay253544
Randolph235680
Washington231031
Spencer228031
Jennings225047
Fountain208845
Sullivan207942
Starke204752
Owen192356
Fulton192039
Jay186429
Carroll185920
Perry180736
Orange177853
Rush170724
Vermillion166043
Franklin165635
Tipton161043
Parke144616
Blackford133831
Pike130334
Pulaski113845
Newton104234
Brown100140
Crawford97614
Benton97113
Martin82915
Warren79715
Switzerland7698
Union69910
Ohio55811
Unassigned0408

Ohio Coronavirus Cases

Data is updated nightly.

Cases: 1054807

Reported Deaths: 18991
CountyCasesDeaths
Franklin1225191356
Cuyahoga1074592069
Hamilton783261168
Montgomery50176996
Summit45557909
Lucas40298765
Butler37768570
Stark31513895
Lorain24246473
Warren23910293
Mahoning20946583
Lake20067362
Clermont19459229
Delaware18085130
Licking16149207
Fairfield15757197
Trumbull15627460
Medina14922259
Greene14706236
Clark13660293
Wood12806185
Portage12431196
Allen11352229
Richland11067198
Miami10548214
Muskingum8717127
Wayne8594209
Columbiana8569226
Pickaway8439121
Marion8390135
Tuscarawas8387240
Erie7600154
Hancock6730123
Ross6707146
Geauga6553146
Ashtabula6530165
Scioto6295101
Belmont5634158
Union558447
Lawrence5470102
Jefferson5343147
Huron5314114
Darke5273121
Sandusky5189120
Seneca5139120
Washington5087107
Athens503856
Auglaize476284
Mercer471984
Shelby456590
Knox4397108
Madison423959
Putnam421799
Ashland413488
Fulton410567
Defiance404296
Crawford3883101
Brown386955
Logan374476
Preble371098
Clinton362160
Ottawa357978
Highland347459
Williams328674
Champaign321557
Jackson308551
Guernsey307549
Perry290549
Fayette278048
Morrow275939
Hardin264764
Henry264366
Coshocton259857
Holmes253499
Van Wert239262
Pike233831
Gallia233446
Adams229152
Wyandot227553
Hocking209759
Carroll189447
Paulding168838
Meigs141738
Noble132937
Monroe128941
Morgan106823
Harrison105636
Vinton81614
Unassigned02
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