BlackRock's Rieder Optimistic About US Economy, Predicts No Fed Rate Cuts in 2021

BlackRock's Chief Investment Officer of Global Fixed Income, Rick Rieder, believes that the US economy is in much better shape than people give credit for, citing resilient government, corporate and consumer spending, improving homebuilder data, $1.5 trillion in excess savings, and low unemployment. Rieder expects the Fed to pause rate increases at its next meeting and believes that its rate-hiking campaign is largely done. However, the biggest threat to his thesis is a potential US default on its sovereign debt, which could be "potentially catastrophic" for the economy.