{"id":24984,"date":"2023-03-29T17:49:59","date_gmt":"2023-03-30T00:49:59","guid":{"rendered":"https:\/\/coinnetworknews.com\/worlds-largest-asset-manager-blackrock-predicts-no-fed-rate-cuts-this-year-economics-bitcoin-news\/"},"modified":"2023-03-29T17:49:59","modified_gmt":"2023-03-30T00:49:59","slug":"worlds-largest-asset-manager-blackrock-predicts-no-fed-rate-cuts-this-year-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/worlds-largest-asset-manager-blackrock-predicts-no-fed-rate-cuts-this-year-economics-bitcoin-news\/","title":{"rendered":"World’s Largest Asset Manager Blackrock Predicts No Fed Rate Cuts This Year \u2013 Economics Bitcoin News"},"content":{"rendered":"
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The world\u2019s largest asset manager, Blackrock, does not see the Federal Reserve cutting interest rates this year. \u201cThat\u2019s the old playbook when central banks would rush to rescue the economy as recession hit. Now they\u2019re causing the recession to fight sticky inflation \u2013 and that makes rate cuts unlikely, in our view,\u201d said the firm\u2019s strategists.<\/strong><\/p>\n

Blackrock\u2019s Interest Rate Prediction<\/h2>\n

Blackrock, the world\u2019s largest asset manager, published weekly commentary Monday explaining the state of the U.S. economy and why it does not see the Federal Reserve cutting interest rates this year.<\/p>\n

While noting that \u201cMarkets have been quick to price in rate cuts as a result of the banking sector turmoil and the Fed signaling a coming pause,\u201d Blackrock\u2019s strategists wrote:<\/p>\n

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We don\u2019t see rate cuts this year \u2013 that\u2019s the old playbook when central banks would rush to rescue the economy as recession hit. Now they\u2019re causing the recession to fight sticky inflation \u2013 and that makes rate cuts unlikely, in our view.<\/p>\n<\/blockquote>\n

\u201cStocks have held up due to hopes for rate cuts that we don\u2019t see coming. We think the Fed could only deliver the rate cuts priced in by markets if a more serious credit crunch took hold and caused an even deeper recession than we expect,\u201d the strategists explained.<\/p>\n

\u201cInflation is likely to prove even stickier than the Fed expects without a deep recession, in our view. The February U.S. CPI data confirmed our view that inflation is still not on track to settle at the Fed\u2019s target,\u201d they added.<\/p>\n

The Blackrock strategists continued: \u201cRecession is foretold as central banks try to bring inflation back down to policy targets. It\u2019s the opposite of past recessions: Rate cuts are not on the way to help support risk assets, in our view.\u201d They noted:<\/p>\n

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In the U.S., it\u2019s now evident in the financial cracks emerging from higher interest rates on top of rate-sensitive sectors. Higher mortgage rates have hurt sales of new homes. We also see other warning signs, such as deteriorating CEO confidence, delayed capital spending plans and consumers depleting savings.<\/p>\n<\/blockquote>\n

Do you think the Federal Reserve will cut interest rates this year? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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