BlackRock Strategist Shifts Stance on Short-Term US Treasuries

According to PANews, BlackRock strategists have shifted their stance on short-term U.S. Treasuries from increasing holdings to maintaining them, expressing skepticism about the likelihood of significant Federal Reserve rate cuts. With U.S. Treasury yields already relatively high, BlackRock favors mid-term U.S. Treasuries with maturities of 5 to 10 years. Chief Investment Strategist Wei Li stated that the speculation about the Federal Reserve having waited too long to ease policies and now being forced to accelerate rate cuts to boost the economy is incorrect.In an interview, Wei Li predicted that the Federal Reserve would cut rates by 25 basis points on Wednesday. Li remarked, 'We believe the market's pricing of the depth of the rate cut cycle is somewhat exaggerated. The rate cut cycle is beginning, but the extent may not be as significant as the market has priced in.' While Li acknowledged that recession risks might have increased, she maintained that her baseline forecast remains an economic slowdown rather than a contraction in the U.S. economy. She noted that policymakers remain cautious about 'persistent' inflation in certain economic sectors. Li explained, 'We have seen the U.S. create an average of 164,000 jobs per month over the past six months, which is still a fairly robust pace.'