BlackRock's chief investment officer of global fixed income Rick Rieder wrote in response to Fed Chair Jerome Powell's testimony before a Senate committee.
In February, the central bankThe probability of a half-point hike moved to 73.5% in Asia's Wednesday afternoon, according to theThe Federal Reserve is slated to meet on March 21-22.
Emphasizing the U.S. economy's resilience, Rieder compared it to polyurethane, a durable material described by the"We've recently likened the U.S. economy to polyurethane, which is a remarkable material that displays flexibility and adaptability, but also durability and strength," he wrote in the note.
"The material's ability to be stretched, bent, stressed and flexed without breaking, while in fact returning to its original condition, is what makes it so chemically unique," he said. In its latest report, the U.S. reported an increase of 517,000 nonfarm payrolls in January, significantly exceeding market estimates, while the unemployment rate fell to 3.4%, the lowest level since May 1969.
The next report is expected Friday and is likely to continue to show a resilient labor market despite the Fed's aggressive rate hikes to tame inflation. Economists surveyed by Dow Jones estimate 225,000 jobs were added last month.
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