"BlackRock's Rieder Advocates Rate Cuts to Combat Inflation"

BlackRock's Rick Rieder argues that the Federal Reserve's traditional strategy of raising interest rates to combat inflation is no longer effective. He suggests that higher rates are benefiting cash-rich consumers and businesses, particularly older Americans and large companies, who have become net lenders. This dynamic is creating an inflationary income stream, complicating the Fed's efforts to control inflation. Rieder believes the Fed may need to cut rates to address this issue and sees opportunities in the bond market regardless of the Fed's actions.