By Walter Grand in Economy —

Markets prematurely hope for Fed rate cut

Markets prematurely hope for Fed rate cut
Photo by Miguel Bruna / Unsplash

The world's largest asset manager BlackRock said that investors are misreading the banking sector's signal to cut rates. The Fed has shown its resolve to fight inflation and will not back down halfway.

The state of the markets confirms BlackRock's earlier view that the Fed may be "underestimating how stubborn inflation is proving to be because of the tight labour market". A scenario where the Fed tries its best to save the banks is not going to happen.