BlackRock: Fed rate hike cycle to last longer, rates expected to approach 5%

07/20 19:01

According to Bloomberg, Joseph Zidle, chief investment strategist at BlackRock's Private Wealth Solutions, said in an interview, "My own view is that the federal funds rate is likely to hit 4.5 percent, or even closer to 5 percent." Zidle said a number of indicators, such as housing and wages, as well as the general capacity constraints of the US economy, suggest that inflation is heating up, which will require a "larger and more sustained" response from the Fed. BlackRock expects the Fed to announce a 75 basis point rate hike at its July meeting.
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