Investment bank BlackRock expects the Federal Reserve to continue raising interest rates even though traders are betting otherwise.
The world's largest financial manager prefers inflation-linked bonds, which are securities that provide protection from rising prices, amid his bet that the markets are wrong in their expectations that the Federal Reserve will start cutting interest amid fears that the economy is heading towards recession.
Recent economic data gives credence to BlackRock's view after core inflation rose in the US in February, while data from the Federal Reserve Bank of New York showed that inflation will remain elevated for longer than previously expected.
The Federal Reserve raised rates last Wednesday for the ninth consecutive meeting, by 0.25%, to the highest level since 2007.
Okaz (Washington) @okaz_online
