Fed Poised for Modest Rate Cuts Amid Inflation Concerns

BlackRock's Larry Fink predicts fewer rate cuts than expected, citing persistent inflationary pressures.

BlackRock CEO Larry Fink anticipates only one Federal Reserve rate cut by the end of 2024, contrary to market expectations of two cuts.
Fink attributes persistent inflation to government policies focused on onshoring and higher domestic wages, which may keep interest rates elevated.
Economists in a Reuters poll predict quarter-point rate cuts at the Fed's November and December meetings, aligning with broader market expectations.
The Federal Reserve's recent 50 basis point cut marked the start of an easing cycle, with further cuts anticipated into 2025.
Despite recent inflation cooling, with a 2.4% annual rise in the consumer price index, inflation remains above the Fed's 2% target.