Investment firm BlackRock warns that markets may be expecting too many Fed rate cuts

From Barron’s: 2025-04-08 07:28:00

BlackRock warns that money markets are expecting too many interest-rate cuts by the Federal Reserve and underestimating inflation risks. The investment firm believes that the world will see higher borrowing costs post-Covid-19 due to incoming tariffs driving inflation up. BlackRock predicts a scenario where interest rates and long-term bond yields will remain higher than pre-pandemic levels. The firm advises against relying on market pricing of four to five quarter-point rate cuts by the Fed this year, urging caution in expectations for lower interest rates.



Read more at Barron’s: Markets Could Be Pricing Too Many Fed Rate Cuts