BLACKROCK, INC. 
(MT Newswires) -- Jean Boivin, Director of BlackRock Investment Institute, discusses recent statements by US Federal Reserve Chairman Jerome Powell. He interprets the recent economic data as temporary difficulties, anticipating an improvement in inflation towards the 2% target in the coming months. Boivin emphasises the Fed's reactivity to data rather than a proactive approach, which he believes is pointing the Fed towards an eventual interest rate cut.
This prospect of a rate cut contributes to a favourable environment for risky investments. Boivin describes a new economic regime, marked by increased bond volatility and strong market reactions to new economic data.
He also notes that, despite expectations of a rate cut by the Fed, long-term rates have settled at a higher level, suggesting that they could remain stable or rise even if the Fed starts cutting short-term rates.
