Larry Fink, CEO of BlackRock Inc., the world’s largest asset manager ($10.5 trillion), stated that market participants are mistaken in expecting the US Federal Reserve to lower the key interest rate too quickly. "The amount of easing priced into the forward curve is simply crazy," he said in an interview with Bloomberg.
Currently, financial markets estimate a one-in-three chance that the US Central Bank will cut rates by another 50 basis points in November and a total of 190 basis points by the end of 2025. However, in Fink’s view, this scenario seems unlikely, as most government measures at present are more inflationary than deflationary.
The head of BlackRock also remarked that, despite some geopolitical challenges, the market is not facing any real systemic risks, and corporate earnings continue to grow. "I would argue today that due to the expansion of global capital markets, we are dispersing more risk than ever before," he said. "In fact, there are fewer systemic risks today than ever."

It is worth noting that recently, Federal Reserve Chair Jerome Powell confirmed that the regulator's base scenario assumes further monetary easing. However, he also mentioned that the Fed is not in a hurry. According to him, the US economy remains fundamentally strong, and inflation will continue to move toward the target level of 2%. The Fed’s inflation forecast for this year has been lowered from 2.6% to 2.3%, and for next year, from 2.3% to 2.1%. Economic growth is projected by the Fed to be 2.0% annually for both 2024 and 2025.