BlackRock: The market's expectations for the number of Fed rate cuts are too high

ChainCatcher news, according to Jinshi reports, BlackRock stated in a report that the money market has overly high expectations for multiple rate cuts by the Federal Reserve, ignoring the risks of rising inflation.

BlackRock said, "We lean towards the market pricing in 4 to 5 rate cuts by the Federal Reserve this year, each by 25 basis points." BlackRock expects that as upcoming tariffs push up inflation, global borrowing costs will be higher than before the pandemic.

"We believe that the plans for a new wave of tariffs in the U.S. and the responses from other countries reinforce the idea that we will be in a world where interest rates and long-term bond yields remain above pre-pandemic levels." Tariffs and loose fiscal policies in some regions of the world may push up inflation.