Rick Rieder

If you were running a big, mature company, you think about what does your normal cap structure look like?

and if you're gonna fund near-term capex over the next couple years if you can do it out the yields curve which is where you see a lot of that financing take place to say gosh I am thrown off a lot of cash flow but if I can lock in these rates and if I'm as a shareholder of any of these companies I say why in the world would you fund everything with equity or why wouldn't we put a little bit of debt get a little bit of gearing get your ROE higher so I just think it's a natural evolution of

Gosh, this is how you run a big company, and this is what a normal cap structure looks like.

So you got what are, I would argue, there's an immense amount of cash that came from, certainly years ago, we had fiscal monetary stimulus.

So I don't think financial conditions drive, financial conditions are great for older savers in the economy.

The interest rate tool today is incredibly powerful on parts of the economy that are really struggling.

Low income, small business, the housing market.

By the way, the government debt since 89% of what the government funds is in zero to two year part of the yield curve.

So it has a huge influence on what taxpayers are paying for debt today.

So my view today, what the interest rate tool does, the idea it affects inflation.

I've been saying this for months.

It's very hard for the Fed to bring down sticky inflation.

Healthcare, education, insurance, not terribly robust.

But you do actually, if you bring the rate down, you will bring down the mortgage rate, which you're seeing play out.

So, and I've said this for months now, I will say one thing.

The Fed doesn't create jobs directly, but you think about what happens, small business does.

44% of the hiring in the US is small business.

The rate's too high for small business.

Second, you think about what happens in the housing market.

We put 3.1 people to work for every home built in this country.