US Federal Reserve to Keep Rates Elevated Through 2024, Says BlackRock
BlackRock experts Laura Cooper, Marilyn Watson, and Amanda Lynam argue the Fed will not cut interest rates at its meeting....
- BlackRock's Laura Cooper expects the Federal Reserve to pause interest rate hikes at the next Open Markets Committee Meeting.
- Rates are likely to stay in "restrictive" territory until mid-2024 before being recalibrated towards neutral.
- Despite signs of disinflation, price pressures are expected to settle above the Fed's 2% target.
- Marilyn Watson, head of Global Fundamental Income Strategy at BlackRock, agrees that the Fed is unlikely to change rates this year unless there is a deterioration in the economy.
- High interest rates are causing companies to issue more junk bonds for financing.
The overall sentiment in the article is neutral. There is a discussion about the Fed's interest rate decision and its potential impact on the economy and corporate financing.