Why Four Fed Rate Cuts This Year Are Unlikely, Says BlackRock’s Larry Fink

Market participants are widely anticipating several interest rate reductions from the Federal Reserve in the coming months. However, BlackRock CEO Larry Fink challenges this outlook, emphasizing the risks of rising inflation due to new tariffs.

During a discussion at the Economic Club of New York, Fink stated, “The idea that the Fed will ease rates four times this year has zero chance.” He highlighted concerns that inflationary pressures could push rates higher rather than lower.

Currently, the Federal Reserve holds its benchmark interest rate steady between 4.25% and 4.5%. Futures markets suggest a potential drop to as low as 3.25% to 3.5% by December, implying up to four quarter-point cuts. Still, Fink’s perspective signals caution against such expectations.

Federal Reserve Chair Jerome Powell recently expressed uncertainty about the future monetary policy path, especially after President Trump introduced new global tariffs that have unsettled financial markets.

Fink also noted that the economy appears to be weakening, with many CEOs indicating that a recession may already be underway. This sentiment aligns with a growing number of Wall Street economists who are raising the likelihood of an economic downturn.

Stay informed on evolving economic policies and market trends to navigate these uncertain times effectively.

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