BlackRock: Markets are pricing in too many Fed rate cuts

Planet Daily News: BlackRock said in a report that the monetary market's expectations for multiple Federal Reserve rate cuts are too high, overlooking the risk of rising inflation. BlackRock stated: "We tend to expect the Federal Reserve to cut rates 4 to 5 times this year, each by 25 basis points, as priced by the market." BlackRock predicts that as upcoming tariffs push up inflation, global borrowing costs will be higher than before the pandemic. "We believe that the plans for new U.S. tariffs and the responses from other countries reinforce the point that we will be in a world where interest rates and long-term bond yields remain higher than pre-pandemic levels." Tariffs and loose fiscal policies in some parts of the world may drive up inflation. (Jinshi)