BlackRock: The prospect of interest rate cuts depends on whether the labor market remains weak enough
Source: BlockBeats
Time: 2025-09-18 12:48:09
BlockBeats News, on September 18, Jean Boivin, head of BlackRock Investment Research Institute, said that the prospect of the Fed's interest rate cut is likely to depend on whether the labor market remains weak enough. He pointed out that Powell said the latest Fed rate cut was due to "risk management" over signs of intensifying weak job markets, which could mean that future policy actions will rely heavily on data performance. Boivin believes the Fed may face pressure on controlling inflation and debt repayment costs — while these pressures are dissipating, inflation may easily rekindle if interest rate cuts boost corporate confidence and recruitment activities. Against this backdrop, further weakness in the labor market will provide a basis for the Federal Reserve to cut more interest rates. (Jin Shi)