{"id":19373,"date":"2025-08-13T07:49:00","date_gmt":"2025-08-13T07:49:00","guid":{"rendered":"https:\/\/finderica.com\/?p=19373"},"modified":"2025-08-13T07:49:00","modified_gmt":"2025-08-13T07:49:00","slug":"blackrocks-rick-rieder-says-cpi-gives-fed-justification-for-a-half-point-cut-in-september","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=19373","title":{"rendered":"BlackRock\u2019s Rick Rieder says CPI gives Fed justification for a half-point cut in September"},"content":{"rendered":"<div>\n<div data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<p><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"ArticleBody-extraData\"><span hidden=\"\" aria-hidden=\"true\" class=\"xyz-data\">Rick Rieder, BlackRock&#8217;s chief investment officer for global fixed income, is sticking with his call for a jumbo rate cut\u00a0from the Federal Reserve next month after new inflation data showed less-than-expected price pressures. &#8220;We expect the Fed to begin cutting rates in September, and it could be justified cutting the Funds rate by 50 basis points, to get it more aligned with longer-term inflationary expectations and some of the productivity enhancement we are seeing across multiple industries,&#8221; Rieder said Tuesday in a note to clients. (1 basis point equals 0.01%.) A half-point cut in September would mirror the Fed&#8217;s move in September 2024 when it began the easing cycle with a big rate reduction. His comments came after data showed the consumer price index increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis. The year-over-year rise was softer than a Dow Jones estimate of 2.8%. Rieder, a widely followed investor on Wall Street, had brought up the possibility of a half-point cut after July&#8217;s jobs report\u00a0released Friday signaled a dramatic slowdown in the labor market. BlackRock manages $3.1 trillion in fixed income assets on behalf of clients. &#8220;Today&#8217;s inflation report was a bit stronger than we have seen over the prior few months, but lower than many have feared,&#8221; Rieder said. &#8220;We are still heartened by the trajectory of some core areas of inflation that are running at lower levels than in the prior few years.&#8221; Excluding food and energy, the core CPI increased 0.3% for the month and 3.1% from a year ago, compared with the forecasts for 0.3% and 3%. The monthly core rate was the biggest increase since January while the annual rate was the highest since February.<\/span><\/span><\/span><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"><\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.cnbc.com\/2025\/08\/12\/blackrocks-rick-rieder-says-cpi-gives-fed-justification-for-a-half-point-cut-in-september.html\" target=\"_blank\" rel=\"noopener\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rick Rieder, BlackRock&#8217;s chief investment officer for global fixed income, is sticking with his call for a jumbo rate cut\u00a0from the Federal Reserve next month after new inflation data showed less-than-expected price pressures. &#8220;We expect the Fed to begin cutting rates in September, and it could be justified cutting the Funds rate by 50 basis<\/p>\n","protected":false},"author":1,"featured_media":19374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[196],"tags":[3483,5581,419,137,7596,7709,7708,7595,64],"class_list":{"0":"post-19373","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-news","8":"tag-blackrocks","9":"tag-cpi","10":"tag-cut","11":"tag-fed","12":"tag-halfpoint","13":"tag-justification","14":"tag-rick","15":"tag-rieder","16":"tag-september"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19373","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19373"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/19373\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/19374"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}