BlackRock, the world’s largest asset manager, , the Federal Reserve has cut interest rates this year. “This is an old strategy when central banks rushed to rescue the economy when a recession hit. We’re making it less competitive,” said a strategist at the company.
Blackrock’s interest rate forecast
His Blackrock, the world’s largest asset manager, looks at the state of the US economy and why it doesn’t see a rate cut by the Federal Reserve. We published a weekly commentary on Monday to explain. this year.
“Markets quickly priced in rate cuts as a result of banking sector turmoil and moratorium signals from the Federal Reserve,” while noting that BlackRock strategists: I write like
No rate cuts this year. This is an old strategy when central banks rushed to save the economy when a recession hit. Now the recession is causing us to fight sticky inflation.
“Equities are holding up on hopes of rate cuts that are unlikely in the near term. We believe the Fed can deliver the rate cuts priced in by the market,” the strategist explained.
“In our view, barring a severe recession, inflation is likely to be even stronger than the Fed expects. It confirms our view that we have not yet reached the target of
Blackrock strategists continued: “This is the opposite of past recessions, and we believe rate cuts are not going to support risky assets.”
In addition to interest rate sensitive sectors in the US, rising interest rates are creating financial fissures. Rising mortgage rates are hurting sales of new homes. We’re also seeing other warning signs, such as eroding CEO confidence, slowing capital spending plans, and drying up consumer savings.
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