Although stress in the banking sector is hurting investor confidence and worsening financial conditions, the Fed will need to keep raising interest rates to fight rampant inflation, the research arm of BlackRock, which manages about $10 trillion in assets, told Bloomberg.
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“We will not see the Fed lower interest rates this year. In the past, it was customary for the Fed to rush to lower interest rates in order to save the economy from recession, but the situation now is different from before. We are now in a new phase that we have not encountered before, where the Fed carefully fights inflation (does not raise interest rates sharply As last year, but does not lower the interest rate), said the strategists at Blackrock.
