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2025-09-18 13:05:57
[BlackRock: The prospect of the Fed cutting interest rates may depend on the continued weakness in the labor market] Jean Boivin, director of the BlackRock Investment Institute, said that the Fed's interest rate cut prospects are likely to depend on whether the labor market remains weak enough. He pointed out that Powell said the Fed's latest interest rate cut was due to "risk management" of increasing signs of weakness in the job market, which may mean that future policy actions will be highly dependent on data performance. Boivin believes that the Fed may face pressure in controlling inflation and debt repayment costs - although these pressures are dissipating, if interest rate cuts boost business confidence and hiring activities, inflation may easily reignite. Against this backdrop, further weakness in the labor market will provide a basis for more interest rate cuts by the Federal Reserve.
