BlackRock CEO says Fed will cut at least by 25 bps before year-end

Fink argues that “it is fair to say the Fed will make at least a 25 bps rate cut by the end of 2024”. And that falls within the forecast made by his firm, arguing for a 25 bps to 50 bps move before the year is done with.

However, Fink warns that “we have greater embedded inflation than we have ever seen”. And given that backdrop, “rates will not be as low as forecast”.

In terms of market pricing, traders are expecting another 25 bps rate cut next week with ~43 bps of rate cuts baked in for that and the December meeting together.

This article was written by Justin Low at www.forexlive.com.