For a Blackrock analyst, political uncertainty will not affect the variable income so much time, he confirmed that there will be no recession in the US and explained that he maintains the investment portfolio.
After the recent decision of the Federal Reserve to keep interest rates unchanged, Blackrock reaffirmed its investment strategy, maintaining a OVERPENDATION IN THE US VARIABLE RENT on his horizon of six to twelve months.
Jean Boivin, responsible for the Blackrock Investment Institute, explained that political uncertainty shook financial markets this year, but stressed that the current economic conditions do not suggest a recession and that corporate profits remain resilient. “The Fed can do little to solve this uncertainty, and she is subject to it,” Boivin said.
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Inflation and limited cuts
One of the key points after the Fed meeting It was the perspective of inflation. Boivin indicated that the president of the agency, Jerome Powell, made it clear that tariffs would have a specific impact on prices. In that sense, Blackrock considers that Fed will have difficulty implementing more than one or two cuts in interest rates this year, even if prolonged uncertainty affects economic growth.
From the manageralso see with good eyes the recent movement of American treasure bonds and foresee new cuts by the Fed. “Fiscal perspectives suggest that the path of long -term bond yields, both in the US and in other countries, is upward from now on,” Boivin concluded.
With this scenario, Blackrock reinforces its variable income strategytrusting that the decrease in political uncertainty in the coming months and economic stability will favor this market positioning.
Source: Ambito
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