BlackRock Executive Interprets Non-Farm Payrolls Turning Negative, Says "Interest Rate Hikes No Longer Make Much Sense"

TechFlow reports, August 9: Regarding the unexpected negative turn in US non-farm payroll data on Friday, Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, stated that the greater-than-expected weakness in last month's employment data reflects precisely the "productivity revolution" of the AI era.

He believes that the decline in non-farm payrolls reflects that US companies are learning how to increase output without adding employees. He said, "I don't think adjusting the overnight federal funds rate really solves the problem, we have seen this situation before... I just think that raising rates nowadays makes little sense." (Jin10)