BlackRock Analyst: Under Warsh’s leadership, the Fed may cut rates once

Odaily reported that according to BlackRock, under the leadership of new Fed Chair Kevin Warsh, the Federal Reserve may have sufficient reason to support a rate cut rather than a hike. When asked about the probability of a rate hike under Warsh's tenure, Navin Saigal, Head of Global Fixed Income for BlackRock's Asia-Pacific region, said, "If I had to choose between a rate hike or a cut, I believe there are actually ample factors supporting a cut." "Looking ahead, the labor market will face certain pressures, which could indicate that the Fed will either hold steady or cut rates." Saigal's remarks contrasted sharply with the general expectations of bond investors. These investors are betting that Warsh will prioritize maintaining the Fed's credibility in fighting inflation over catering to President Trump's calls for lower interest rates. Current pricing indicates that the market is almost certain the Fed will raise rates before December. (Jinshi Data)