BlackRock global chief investment strategist says that rate cut expectations are frothy

I posted yesterday on the view from BlackRock on the 2024 Federal Open Market Committee (FOMC):

Rieder’s call in that interview was backed up by the firm’s global chief investment strategist speaking on Tuesday, US time:

  • don’t expect the Fed to aggressively cut rates in 2024
  • “Market pricing for how early the first cut is, as well as how many cuts there will be next year, is a bit overdone in our view,”
  • referred to indicators of market expectations of a rate cut in March and five rate cuts in 2024 … “That is really aggressive. Something would have to go seriously wrong for that to come through,”
  • BlackRock expects at least one rate cut in H2 of 2024

This article was written by Eamonn Sheridan at www.forexlive.com. Source