BlackRock's Rieder: Markets Dubious About Fed Rate Hikes

The transcript discusses the complexities of monetary policy, focusing on negative rates in Japan and their impact on financial markets. It compares the Bank of Japan's strategies with those of the Federal Reserve, particularly in terms of inflation and interest rates. The conversation also covers GDP growth, productivity, and how traditional measurements may not fully capture economic dynamics. Finally, it addresses market expectations and reactions to potential rate changes.

What challenges are associated with negative nominal rates and policy rates in Japan?

How does the manipulation of the yield curve by the Bank of Japan affect market dynamics?

What are the implications of zero or negative interest rates on the banking system's ability to lend?

Discuss the relationship between interest rates and GDP growth as mentioned in the conversation.

What factors contribute to the discrepancy between Fed's GDP growth expectations and actual measurements?