BlackRock 2025 Outlook: AI boom continues to boost US stocks, Fed expected to be unable to lower interest rates below 4%
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Odaily Odaily News: BlackRock, the world's largest asset management company, expects the artificial intelligence boom to continue to boost U.S. stocks and support broader economic growth next year, although rising U.S. debt levels may threaten its optimistic forecast for 2025. The agency said that innovations in artificial intelligence technology may benefit U.S. stocks more than European stocks. The agency said that while U.S. economic growth may cool slightly next year, the Federal Reserve is unlikely to cut interest rates significantly because inflation remains sticky and is higher than the central bank's target. The agency does not expect interest rates to fall below 4% from the current 4.5%-4.75%. Continued price pressures caused by factors such as geopolitical divisions and infrastructure spending may put pressure on the bond market.
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