We're not going to see interest rates as low as people are forecasting," Fink, who oversees BlackRock's $10 trillion in assets, said during a Bloomberg panel that was part of Saudi Arabia’s annual flagship investment conference, the Future Investment Initiative.Fink predicted just one Fed interest rate cut before 2025 against market expectations of two."I think it’s fair to say we’re going to have at least a 25 (basis-point cut), but, that being said, I do believe we have greater embedded inflation in the world than we’ve ever seen," Fink warned.
Last month, the Fed surprised traders with a 50 basis point cut to interest rates, kicking off a reduction cycle after interest rates were ramped up at a historical clip as lockdown-induced inflation threatened to spiral out of control.Expectations that interest rates will come down sharply this year have fueled a bitcoin price boom through 2024, with bitcoin and the wider crypto market bouncing back along with stock markets.
Sky-high interest rates have pushed up payments on the $35 trillion U.S. debt pile, with Tesla billionaire Elon Musk last week warning "the interest payments on the debt are 23% of all federal tax revenue" and declaring the situation a "financial emergency."
