Despite the continuing worries over Fed tapering and bond fund outflows, not all asset manager executives are concerned.

BlackRock's [profile] global chief investment strategist, Russ Koesterich told Barrons that he doesn't expect investor panic after Ben Bernanke's upcoming two day testimony before Congress.

As long as inflation remains low enough, the Fed should be less likely to raise interest rates, Koesterich writes:

[W]e expect fixed income markets to remain volatile, but we do not believe that we will see a precipitous drop in prices and overly dramatic advance in yields. For one reason, inflation still remains tame, which means the Fed is under less pressure to move quickly ... Although several members of the Federal Reserve have clearly indicated that the central bank’s longstanding easing bias presents some risks, without inflationary pressure the Fed is unlikely to quickly shift away from monetary accommodation .

To read more, click here. 

Edited by: Casey Quinlan


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