Stocks flirt with record even as Fed considers extra-large interest-rate cut

It’s a scenario that may strike some investors as unnerving. The stock market is trading near an all-time high while the Federal Reserve is contemplating an extra-large interest-rate cut that raises questions over whether policymakers may see something troubling about the economy.

“I don’t believe a recession is anywhere near in sight,” said Rick Rieder, BlackRock’s chief investment officer of global fixed income and head of the firm’s global allocation investment team, in a phone interview. “The economy is moderating, but still in pretty good shape.”