{"id":137357,"date":"2024-09-17T16:00:19","date_gmt":"2024-09-17T13:00:19","guid":{"rendered":"https:\/\/cryptodnes.bg\/en\/?p=137357"},"modified":"2024-09-17T01:38:12","modified_gmt":"2024-09-16T22:38:12","slug":"blackrock-doubts-fed-will-cut-rates-as-deeply-as-markets-expect","status":"publish","type":"post","link":"https:\/\/cryptodnes.bg\/en\/blackrock-doubts-fed-will-cut-rates-as-deeply-as-markets-expect\/","title":{"rendered":"BlackRock Doubts Fed Will Cut Rates as Deeply as Markets Expect"},"content":{"rendered":"

The firm argues<\/a> <\/strong>that the current strength of the US economy and persistent inflation make significant reductions unlikely.<\/p>\n

Market traders are predicting a total of 120 basis points in rate cuts this year, with further reductions possibly reaching 250 basis points by the end of 2025. This would lower the current rate range of 5.25%\u20135.5% to approximately 2.8%\u20132.9% by late next year. However, BlackRock believes these expectations are overly optimistic and that the Fed is unlikely to replicate past recession-level cuts.<\/p>\n

Factors such as an aging workforce, ongoing budget deficits, and geopolitical tensions are expected to keep inflation and interest rates elevated in the near term. Consequently, BlackRock is cautious about short-term US Treasuries, anticipating that if rate cuts are less substantial than expected, bond performance might suffer.<\/p>\n