BlackRock warns markets may be overestimating U.S. Fed rate cuts

BlackRock said in a report that markets are overly optimistic about U.S. Federal Reserve (Fed) rate cuts, underestimating inflation risks. According to foreign media, BlackRock noted that expectations of 4 to 5 cuts at 25 basis points each may be unrealistic, especially as upcoming tariffs could push inflation higher. The firm added that global borrowing costs are likely to remain above pre-pandemic levels.