BlackRock CEO: The Fed will only cut interest rates twice in 2024! No return to 2% inflation target

This site (120bTC.coM): The recently released CPI and non-farm employment data in the United States exceeded market expectations, showing that the labor market is still strong and inflation is still stubborn. The market is pessimistic that the Fed There is little hope that interest rates will be cut in June. Goldman Sachs once again lowered the number of interest rate cuts this month. It is expected that there will be only two rate cuts this year, one in July and one in November. This is lower than what most Fed officials predicted at the March meeting. Three interest rate cuts.

Like Goldman Sachs, Larry Fink, CEO of global asset management leader BlackRock, who also predicts that the United States will only cut interest rates twice this year, said in an interview with CNBC yesterday (12th): Earlier this year, some When prominent economists say there will be six rate cuts this year, I say probably two. I still say "maybe twice."

He predicts that the Federal Reserve will still take some interest rate cuts this year, but it will not be able to achieve its goal of suppressing the inflation rate to 2% this year. Many Fed officials have previously stressed that it would not be appropriate to cut interest rates prematurely before seeing more data showing that inflation is falling to the 2% target.

Larry Fink: The Federal Reserve will not be able to achieve the 2% inflation target this year

The CEO of BlackRock, who has an asset management scale of US$10.5 trillion and launched his own Bitcoin spot ETF at the beginning of the year with great success pointed out that the U.S. central bank is unlikely to achieve its 2% inflation target anytime soon. He thinks the central bank's targets may be set too high.

"Inflation has slowed, and we have been saying it will slow. But will it slow to the 2% ultimate goal that the Fed is seeking? I doubt it. I think we can get it to The inflation rate is stable in the range of 2.8% to 3%, which means that the victory over inflation is complete.”

The market is pessimistic about starting interest rate cuts in June

This week, there is a vote this year. Right, Atlanta Fed Chairman Raphael Bostic, who has always been dovish, reiterated his expectation that interest rates will be cut only once in 2024. Barclays Bank also adjusted its interest rate cut expectations on the 10th, believing that the Federal Reserve will only cut interest rates once this year. The amplitude is 1 yard. But some officials still predict there will be three interest rate cuts this year.

CME Group FedWatch data shows that the probability of keeping interest rates unchanged at 5.25%~5.50% in June is as high as 71.7%, and the probability of starting to cut interest rates by 1 percentage point in July is about 44.5%, and the probability of reducing interest rates by 2 percentage points. Then there are 11.4%.

The market is bearish and interest rates will be cut in June

The above is the detailed content of BlackRock CEO: The Fed will only cut interest rates twice in 2024! No return to 2% inflation target. For more information, please follow other related articles on the PHP Chinese website!