Fed Rate Cuts Will Not be as Deep as Market Expects: BlackRock
$9 trillion asset management company BlackRock says the Federal Reserve’s interest rate cuts will not be as deep as the market expects. BlackRock Investment Institute wrote in a note Monday that a resilient economy and inflation remaining sticky may hamper the Fed from making a steep interest rate cut. JUST IN: BlackRock says the Federal Reserve's interest rate cuts will not be as deep as the market expects. — Watcher.Guru (@WatcherGuru) September 16, 2024 The Federal Reserve will decide this week whether it will cut interest rates for the first time in four years. The US has been fighting a difficult battle with inflation since the end of the COVID-19 pandemic. That battle temporarily led to a year-long streak of interest hikes monthly. However, it is expected that the Fed will finally make its first cuts, after leaving interest rates unchanged throughout the summer. BlackRock wrote that a reduction in interest rates of this magnitude reflects recession fears that are over...