BlackRock 2025 Outlook: The artificial intelligence boom continues to boost U.S. stocks and the Fed is expected to be unable to lower interest rates below 4%
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2024-12-05 01:02 5,740
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Golden Finance reports that BlackRock, the world's largest asset management company, expects the artificial intelligence boom to continue to boost U.S. stocks next year and support broader economic growth, although rising U.S. debt levels may threaten its optimistic forecast for 2025. The agency said that innovations in artificial intelligence technology may benefit U.S. stocks more than European stocks. The agency said that while U.S. economic growth may cool slightly next year, the Fed is likely to be unable to cut interest rates significantly because inflation remains sticky and above the central bank's target. The agency does not expect interest rates to fall below 4% from the current range of 4.5%-4.75%. Ongoing price pressures from factors such as geopolitical fragmentation and infrastructure spending could weigh on bond markets.