Blackrock discussed the state of the US economy on Monday and Federal ReserveHe published his weekly comment explaining why he hasn’t lowered interest rates this year.
blackrock “Markets were quick to price rate cuts as a result of the turmoil in the banking sector and the Fed signaling an impending pause,” the strategists continued.
We do not expect any rate cuts this year. It’s just an old game where central banks rush to save the economy when a recession hits. Now they are causing a recession to fight the continuing inflation and this makes interest rate cuts unlikely in our opinion.
Stocks rose on hopes of rate cuts that we don’t see coming. We think that the Fed will only make rate cuts priced by the markets if a more serious credit crunch begins and causes a deeper recession than we expected.
NEWS CONTINUES BELOW
Koinfinans.com As analysts have reported, the Fed will not be able to stop this endless inflation until a deep recession occurs. Analysts February US CPI data show that inflation is still FedHe stated that they have confirmed their views that .
Blackrock strategists continued: “A recession is predicted as central banks try to bring inflation back to their policy targets. This is the opposite of past recessions: In our view, rate cuts are not on track to support risk assets.”
In the US, financial cracks from high interest rates above interest rate sensitive sectors are now clearly visible. High mortgage rates hurt new home sales. We’re also seeing other warning signs, such as declining CEO confidence, delaying capital spending plans, and consumers consuming their savings.
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