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

Odaily Odaily reported that BlackRock Investment Institute head Boyven said in a report that the U.S. Federal Reserve's decision to cut interest rates by 50 basis points may boost the market in the short term, but if U.S. inflation and economic growth do not meet the Fed's expectations, the risk of increased market volatility in the coming months will also increase. "Given the extremely uncertain outlook and the differences 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 disappointing, and instead, positive news will come from resilient economic growth," Boyven said. (Jinshi)