US Federal Reserve to Keep Rates Elevated Through 2024, Says BlackRock


19 Sep 2023 4:15 PM

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.

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You May Ask

What does Laura Cooper expect the Federal Reserve to do at the next Open Markets Committee Meeting?Until when does Cooper expect rates to stay in "restrictive" territory?What is the Fed's target for inflation?What conditions would lead the Fed to change interest rates this year?Why are companies issuing more junk bonds in the current environment of high interest rates?

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