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2026-05-25 17:25:26
[Rate Cut or Rate Hike? BlackRock Bets Against Warsh, Market Consensus Faces Challenge] ⑴ Navin Saigal, Head of Global Fixed Income for Asia Pacific at BlackRock, explicitly stated that under the leadership of new Federal Reserve Chairman Warsh, there are ample factors supporting a rate cut rather than a rate hike. ⑵ Saigal pointed out that the labor market will face some pressure in the future, which may indicate that the Fed will either hold off or choose to cut rates. ⑶ This view contrasts sharply with the general expectation of bond investors, whose pricing currently shows the market is almost certain that the Fed will raise rates before December. ⑷ Investors generally bet that Warsh will prioritize maintaining the Fed's credibility in combating inflation rather than catering to Trump's demands for low interest rates, but BlackRock's assessment offers another perspective.
