BlackRock: Even if non-farm data is quite strong, it will not stop the Fed from cutting interest rates

Odaily Odaily News: According to Russ Brownback, head of global macro strategy for fixed income at BlackRock, even if the U.S. jobs report released on Friday is "quite strong," it may not prevent the Federal Reserve from cutting interest rates this month because the Fed's policy rate remains restrictive. Despite evidence of continued economic growth, inflation that remains somewhat sticky, and U.S. stocks close to all-time highs, traders on Thursday morning expected that the Federal Reserve is likely to decide later this month to cut its benchmark interest rate by 25 basis points from its current range of 4.5% to 4.75%. Brownback said one reason for the rate cut could be that the Fed's "actual" policy rate, adjusted for core PCE, is currently higher than it was in July 2023, when the Fed made its last rate hike to curb high inflation. (Jinshi)