Rick Reider: Fed chair is an independent seat

Summary

Rick Rieder, BlackRock CIO of Global Fixed Income, joins Closing Bell to discuss the DOJ investigation into the Federal Reserve and Fed independence. Rieder says the Fed institution has integrity and will follow the data, and he argues the Fed should cut the policy rate to about 3% to address a potentially problematic labor market and an over-levered government. He also notes the economy is operating at a good level and markets tend to overreact.

• Rick Rieder of BlackRock discusses the DOJ investigation into the Federal Reserve.
• Rieder says Fed independence is intact and the committee will make data-driven decisions.
• He declines to comment directly on his potential Fed chair interview.
• Rieder advocates cutting the Fed policy rate to around 3%.
• He cites a potential labor-market problem and an over-levered government as reasons for lower rates.
• He says the economy is operating at a really good level.
• He notes markets tend to overreact to news.