BlackRock: Inflation Rebound to Limit Fed Rate Cuts, Challenging Market Optimism

• BlackRock believes inflation will rebound beyond 2024 due to ongoing wage pressures, preventing the Fed from cutting rates as much as markets expect • Resurgent inflation will eventually challenge positive risk sentiment, per BlackRock
• CME FedWatch tool shows 10.5% chance of 25bps rate cut at March FOMC meeting, 89.5% chance rates remain unchanged • Major stock indexes like Dow, S&P 500, Nasdaq trade slightly higher early Thursday • US Treasury yields have subsided in early trading Thursday