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📰 🔸MARKET VOLATILITY LIKELY TO RISE AFTER U.S. FED’S 50 BASIS-POINT RATE CUT: BLACKROCK The U.S. Federal Reserve’s 50 basis-point interest-rate cut could boost markets in the near term but raises the risk of increased volatility in the coming months if U.S. inflation and economic growth don’t align with the Fed’s projection, Jean Boivin, head of the BlackRock Investment Institute says in a note. “Given what is an extremely uncertain outlook and the divided opinions before the Fed’s blackout period, the near unanimity on [Wednesday’s] decision is perhaps more surprising than the one dissent.” Markets price in 71 basis points of further Fed rate cuts in 2024, LSEG Refinitiv data show. “We still think market rate-cut expectations will ultimately be disappointed and the positive news will instead come from resilient growth,” Boivin says.

September 19, 2024
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🔸MARKET VOLATILITY LIKELY TO RISE AFTER U.S. FED’S 50 BASIS-POINT RATE CUT: BLACKROCK

The U.S. Federal Reserve’s 50 basis-point interest-rate cut could boost markets in the near term but raises the risk of increased volatility in the coming months if U.S. inflation and economic growth don’t align with the Fed’s projection, Jean Boivin, head of the BlackRock Investment Institute says in a note. “Given what is an extremely uncertain outlook and the divided opinions before the Fed’s blackout period, the near unanimity on [Wednesday’s] decision is perhaps more surprising than the one dissent.” Markets price in 71 basis points of further Fed rate cuts in 2024, LSEG Refinitiv data show. “We still think market rate-cut expectations will ultimately be disappointed and the positive news will instead come from resilient growth,” Boivin says.