BlackRock says markets underestimate inflation’s persistence, Fed hike and hold rates high

<p>BlackRock preview what they expect from the Federal Open Market Committee (FOMC) on Wednesday, 26 July 2023 and further ahead:</p><ul><li>

"Central banks are set to hike policy rates this week. Markets expect rate cuts to soon follow due to cooling inflation, whereas we see central banks holding tight" </li><li>“The Fed and European Central Bank will likely raise interest rates again this week. We see the Bank of Japan opting to keep policy loose to sustain inflation.”
</li><li>"We favor U.S. inflation-linked bonds as markets underestimate inflation’s persistence."</li></ul><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/td-expect-lower-usd-after-the-federal-open-market-committee-fomc-meeting-today-preview-20230725/" target="_self" rel="follow">TD expect lower USD after the Federal Open Market Committee (FOMC) meeting today, preview</a></li><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-25-jul-the-usd-was-lower-ahead-of-fed-decision-tomorrow-20230725/" target="_self" rel="follow">Forexlive Americas FX news wrap 25 Jul: The USD was lower ahead of Fed decision tomorrow</a></li></ul><p>FOMC announcement due at 2pm US Eastern time, Federal Reserve Chair Powell follows a half hour later </p>

This article was written by Eamonn Sheridan at www.forexlive.com.