Following the FOMC meeting last week, the market has received signals that the tightening cycle of the Federal Reserve (Fed) may be coming to an end.
In fact, some even expect the central bank to lower interest rates due to the banking crisis that has threatened the global financial market.
This followed expectations seen from the CME FedWatch Tool that saw benchmark interest rates decline in July.
Even so, the world's largest asset management giant, BlackRock Inc. warned investors otherwise!
BlackRock insists that the Fed will continue to raise interest rates following its recent statement that inflation remains the central bank's priority.
It also cited Chairman Jerome Powell's statement that no interest rate cuts will be implemented this year.
According to a note written by BlackRock Investment Institute strategists, they see the Fed as likely to reduce the 'battle' for inflation but still no rate cut.
However, it is thought that the central bank will deliver a rate cut if more serious credit problems occur and cause a deeper than expected recession.
