BlackRock Analyst: Under Powell Leadership, Fed Likely to "One-and-Done"

BlockBeats News, May 25th - BlackRock Group stated that under the leadership of new Fed Chair Powell, the Fed may have sufficient reasons to support a rate cut instead of a rate hike. Navin Saigal, Head of Global Fixed Income Business in Asia-Pacific at BlackRock, responded to questions about the probability of rate hikes during Powell's tenure, saying, "If I had to choose between a rate hike and a rate cut, I believe there are actually enough factors to support a rate cut." "Looking ahead, the labor market will face some pressure, which may indicate that the Fed will either stay put or cut rates." Saigal's comments are in contrast to the widespread expectations of bond investors. These investors are betting that Powell will prioritize maintaining the Fed's reputation in combating inflation rather than catering to U.S. President Trump's demands for low interest rates. Current pricing indicates that the market is almost certain that the Fed will raise rates before December. (FX Street)