BlackRock Asset Management believes that the Federal Reserve may remain inactive after cutting interest rates in December

BlackRock Asset Management believes that the Federal Reserve may not cut interest rates at all next year. This view contrasts with the current market pricing in nearly three rate cuts by 2026. "Our view is that the Federal Reserve may not be able to deliver as many rate cuts as the market has priced in," said Arun Sai, a senior multi-asset strategist at BlackRock, who expects the Federal Reserve to cut rates once at the December meeting and then remain steady next year, as the latest earnings season has shown that the U.S. economy is still in good shape. (Bloomberg)