BlackRock: Market volatility could rise after Fed cuts rate by 50 basis points

Odaily News The U.S. Federal Reserve's decision to cut interest rates by 50 basis points could boost markets in the short term, but the risk of heightened market volatility in the coming months will also increase if U.S. inflation and economic growth do not meet the Fed's expectations, said Boyven, head of the BlackRock Investment Institute, in a report. "Given the extremely uncertain outlook and the divergence of opinion ahead of the Fed's 'regulatory period,' the near-unanimous decision may be more surprising than one dissent." Data from LSEG Refinitiv showed that the market expects the Fed to cut interest rates by a further 71 basis points in 2024. "We still believe that market expectations for rate cuts will ultimately be disappointed, and instead, positive news will come from resilient economic growth," Boyven said. (Jinshi)