• 20/07/2024 15:51

BlackRock forecasts higher US inflation than regulators expect

Investment giant BlackRock predicts that US inflation will remain at 3% in 2024, which will impact financial markets. MarketWatch reports this.

 BlackRock predicts higher inflation in the US than regulators expect

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Company analysts believe that the main reason for maintaining the level inflation will be a worsening geopolitical background.

“Geopolitical fragmentation, one of the five biggest factors influencing markets, is increasingly evident in recent events in Asia and the Middle East. This is one of the main reasons why we are seeing persistent inflation pressures – keeping rates above pandemic levels,” says the BlackRock report.

According to the company’s forecast, no clear improvement in the situation is expected in 2024. In particular, the firm expects a deterioration in cooperation between countries, increased competition and the strengthening of intermediary states, which include Mexico and Vietnam.

Recall that the US Federal Reserve System (FRS) has set an inflation target of 2%. Only after achieving this goal will the regulator consider the possibility of lowering the interest rate.


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