BlackRock Predicts Fed Rate Cuts Possible in 2026 as Markets Price June Unchanged at 98.1%

GateNews
According to BlackRock's Navin Saigal, head of global fixed income business for Asia-Pacific, the Fed may opt for interest rate cuts in 2026 despite market expectations of hikes. Speaking to Bloomberg TV, Saigal noted that structural economic dynamics supporting a rate-cut cycle have matured, contradicting current market pricing. He stated that current conditions suggest rate cuts are more likely than hikes, citing potential pressures on the job market. According to CME FedWatch data, the probability of the Fed keeping rates unchanged in June is priced at 98.1%, with rate hike probability at 1.9%.
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