BlackRock's Rieder on Jobs Report, Fed Rates and Bonds

• The July jobs report is deemed 'unremarkable,' with low job growth and no significant wage growth, suggesting a 'productivity revolution' in the economy.
• Rieder believes the Fed's rate hikes are ineffective against current inflation, which is sticky in services like education and healthcare, advocating for fiscal policy solutions instead.
• BlackRock's fixed income strategy focuses on securing high yields (around high 6s) from A-rated credit in European and emerging markets, while being cautious on US investment-grade credit due to significant supply.

BlackRock's Rick Rieder describes the July jobs report as 'unremarkable' and sees a 'productivity revolution' driving the economy. He argues that Fed rate hikes are ineffective against current inflation, which is better addressed by fiscal policy. In fixed income, he favors stable yields in European and emerging markets, avoiding excessive credit risk despite high debt issuance.