BlackRock's Bond Chief, Rick Rieder, believes that the US economy is faring better than many expected, citing resilient government, corporate and consumer spending, improving homebuilder data, $1.5tn in excess savings, and low unemployment. Despite concerns of a possible recession, Rieder expects the Federal Reserve to pause rate increases at its next meeting, with the rate-hiking campaign largely done. However, the biggest threat to Rieder's thesis is a potential US default on its sovereign debt, which could have "potentially catastrophic" effects on the economy.

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