BlackRock Global Allocation Investment Team Director Rick Rieder said the key significance of the Fed's decision to cut interest rates by 50 basis points is that the Fed will continue to cut interest rates over the next two years. Rieder said that as the Faiz Oranı falls, fixed income assets will benefit from it, but the relationship is not linear. He added that the interest rate cut did not provide answers to questions about the economy, the upcoming US elections, or how geopolitical developments will unfold. BlackRock still favors assets in the middle of the yield curve, especially those with yields higher than US Treasuries, as these assets provide rich income due to the actual Faiz Oranı still being high.
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BlackRock: The Fed's loose cycle will continue for two years
BlackRock Global Allocation Investment Team Director Rick Rieder said the key significance of the Fed's decision to cut interest rates by 50 basis points is that the Fed will continue to cut interest rates over the next two years. Rieder said that as the Faiz Oranı falls, fixed income assets will benefit from it, but the relationship is not linear. He added that the interest rate cut did not provide answers to questions about the economy, the upcoming US elections, or how geopolitical developments will unfold. BlackRock still favors assets in the middle of the yield curve, especially those with yields higher than US Treasuries, as these assets provide rich income due to the actual Faiz Oranı still being high.