BlackRock Sees 2026 Fed Rate Cuts as Markets Price 1.9% Chance of June Hike
Updated
Updated · cryptonews.net · May 25
BlackRock Sees 2026 Fed Rate Cuts as Markets Price 1.9% Chance of June Hike
3 articles · Updated · cryptonews.net · May 25
BlackRock said the Federal Reserve could still cut rates in 2026, arguing markets have overdone expectations for tighter policy after the US-Iran conflict lifted energy prices and inflation fears.
Navin Saigal, BlackRock’s Asia-Pacific fixed-income head, told Bloomberg TV that structural conditions for an easing cycle have matured and that labor-market pressure could push the Fed to hold or lower rates.
Kevin Warsh, the newly appointed Fed chair, was also described as having justification and institutional backing to move toward cuts rather than hikes, reinforcing BlackRock’s contrarian view.
CME FedWatch still shows June policy staying on hold as the base case, with a 98.1% probability of no change and just a 1.9% chance of a rate increase.
Will the Fed prioritize fighting oil-driven inflation or preventing a potential AI-driven slowdown in the job market?
As AI creates 'growth without labor,' can the Fed justify cutting rates while inflation remains persistently high?