NEW YORK (Reuters) - A top bond manager at BlackRock, the world's biggest asset manager, said on Friday the Federal Reserve would likely leave U.S. interest rates alone for the rest of 2016 despite a surprisingly strong rebound in domestic hiring in June.
Rick Rieder, BlackRock's chief investment officer of global fixed income, said the bigger-than-expected 287,000 gain in payrolls in June, the biggest in eight months, was not enough to alter his outlook that U.S. jobs growth would cool as the earlier strong pace of gains is unsustainable and corporate profits will likely weaken.
Global risks including the fallout from Britain's vote to leave the European Union and the likelihood of more monetary stimulus from overseas central banks will also likely keep the Fed from raising rates this year, he said.
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"The Fed might do one hike this year, but likely won’t be able to do that one given global economic, geopolitical, and competitive monetary policy dynamics," Rieder said in a statement.
(Reporting by Richard Leong; Editing by James Dalgleish)