Fed is going to hike rates, says BlackRock's Rick Rieder

• Rieder believes the Fed will hike 25 bps tomorrow, driven by market expectations and credibility, though he personally wouldn't due to limited inflation impact and high costs.
• He highlights the 'serious cost' of rising rates for the U.S. government (e.g., $100 billion per 100 bps hike) and negative impacts on interest-sensitive sectors like housing.
• Rieder finds the front end of the yield curve attractive (e.g., BlackRock's BINC ETF yielding 7.2% with under 3 years duration), but remains significantly underweight the back end.
• He rates the stock market as 'just okay' (B-minus) compared to a year ago, citing peaking earnings growth and the increasing attractiveness of fixed income as an alternative.

Rick Rieder of BlackRock expects the Fed to hike rates by 25 basis points tomorrow for credibility, despite his view that it won't significantly impact inflation and carries serious costs. He sees opportunities in the front end of the bond market but is cautious on equities, rating them 'just okay' due to peaking earnings and attractive fixed income alternatives.