The market 'got ahead of itself' in expecting interest-rate cuts, according to a BlackRock strategist who warned the Fed would 'stay hawkish'

• A BlackRock strategist said the markets were too confident the Fed would rein in interest rates.
• Calls for the Fed to do this have driven the bullishness in the markets in 2023 so far.
• But BlackRock's Ben Powell told Bloomberg the Fed would likely "stay hawkish" on rates.

A senior BlackRock strategist has warned that the Fed is likely to "stay hawkish" on interest rates, adding the markets' confidence that they would fall was misplaced.

As the impact of last year's rates rises filter into the economy, the Fed is now facing calls to rein in or even reverse its hawkish stance on monetary policy.