BlackRock Warns on Bonds, Saying Fed Rate Bets Are Overdone
- Market odds now favor half-point cut by FOMC on Wednesday
- Gradual easing is enough given ‘robust’ job market: Wei Li
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BlackRock Inc. strategists turned underweight short-dated US Treasuries from overweight, saying the extent of Federal Reserve interest-rate cuts the market is betting on is unlikely to pan out.
Wei Li, the firm’s chief investment strategist, said speculation that the Fed waited too long to ease and will now be forced to cut at an accelerated pace to shore up the economy is misplaced. In an interview with Bloomberg TV, she said she expects the Fed will lower rates by 25 basis points on Wednesday.