NEW YORK (Reuters)
A top bond manager at BlackRock, the world's
biggest asset manager, said on Friday the Federal Reserve would likely
leave U.S. interest rates alone for the rest of 2016 despite a
surprisingly strong rebound in domestic hiring in June.
Rick
Rieder, BlackRock's chief investment officer of global fixed income,
said the bigger-than-expected 287,000 gain in payrolls in June, the
biggest in eight months, was not enough to alter his outlook that U.S.
jobs growth would cool as the earlier strong pace of gains is
unsustainable and corporate profits will likely weaken.
Global
risks including the fallout from Britain's vote to leave the European
Union and the likelihood of more monetary stimulus from overseas central
banks will also likely keep the Fed from raising rates this year, he
said.
"The
Fed might do one hike this year, but likely won’t be able to do that
one given global economic, geopolitical, and competitive monetary policy
dynamics," Rieder said in a statement.
