- Market pricing as of Tuesday morning pointed to the Fed holding its benchmark interest rate at current levels and then starting to reduce as early as July.
- The expectation for cuts would be consistent with a recession and an accompanying fall in inflation, assumptions that Wall Street strategists think are dubious.
- “We think the Fed could only deliver the rate cuts priced in by markets if a more serious credit crunch took hold and caused an even deeper recession than we expect,” BlackRock strategists wrote.
https://www.cnbc.com/2023/03/28/blackrock-warns-that-investors-are-making-a-mistake-by-betting-on-the-fed-to-cut-rates.html