TechFlow news, April 8 — According to Jinshi Data, BlackRock said in a report that money markets have overestimated the likelihood of multiple rate cuts by the Federal Reserve, overlooking the risk of rising inflation.
BlackRock stated: "We lean toward the market pricing of four to five 25-basis-point rate cuts by the Fed this year." BlackRock expects global borrowing costs to remain higher than pre-pandemic levels as upcoming tariffs push inflation upward.
"We believe that plans for new U.S. tariffs and responses from other countries reinforce the view that we will be in a world where interest rates and long-term bond yields remain above pre-pandemic levels. Tariffs and loose fiscal policies in some regions of the world may drive up inflation."
