By Jack Pitcher

The world's biggest bond investor saw a lot to like in Friday's jobs report.

"Overall, we saw that hiring is still happening at a reasonable, albeit modestly slower pace," Rick Rieder, who oversees more than $3 trillion as BlackRock's chief investment officer for fixed-income, wrote to clients Friday.

Rieder expects that the Federal Reserve will be able to cut interest rates several times in the second half of the year because the labor market is coming into better balance with less upward pressure on wages.

-- "Seeing reduced levels of hiring, lower wage increases, and lower quits rates is all music to the ears of the Fed, in terms of its ability to provide lower rate conditions that can help bring down the cost of mortgages, and which may encourage more home building," Rieder wrote.

-- "This, in turn, should improve housing inventory levels, and consequently can persistently lower the sticky and burdensome shelter inflation that we have witnessed over the prior few years."

-- "Therefore, a virtuous cycle is possible, with a better balance in jobs leading to better balance in shelter (at lower rate levels), which then leads to better balance in inflation and a better balance in views amongst the Fed that they can be comfortable with easier monetary policy from here."

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(END) Dow Jones Newswires

June 06, 2025 11:45 ET (15:45 GMT)

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