Leonardo Munoz/VIEWpress
- Investors betting on sharp interest-rate cuts this year may be disappointed, according to BlackRock.
- The Fed's ability to cut may be curtailed by a resurgence in inflation, says the world's biggest asset manager.
- Stocks and bonds rallied at the end of 2023 as Wall Street ramped up bets that rates are set to fall.
Investors positioning for sharp interest-rate cuts by the Federal Reserve this year may be disappointed, according to BlackRock.
The central bank probably won't cut rates as markets expect because inflation will rebound later this year with a tight labor market fueling accelerated wage growth, strategists at the world's biggest asset manager said in a weekly note.