The Chief Investment Officer at BlackRock expects the Federal Reserve to cut interest rates by 25 basis points in December.

In an interview with the American CNBC network on Thursday evening, Rick Ryder, Chief Investment Officer of Global Fixed Income at the largest asset and risk management company in the world, BlackRock, stated that he expects the Federal Open Market Committee (FOMC) to cut interest rates by 25 basis points in its next meeting in December. At the same time, Ryder mentioned that he expects two or more rate cuts from the U.S. Federal Reserve during 2025. The key points from Ryder's interview are as follows: - The current target range for the federal funds rate of 4.5% to 4.75% is sufficiently restrictive for economic activity in the United States. - After the rate cut in the December meeting, Ryder anticipates that the Federal Open Market Committee will pause and keep rates unchanged at the next meeting. - The Federal Open Market Committee will evaluate the number of cuts and their pace for future meetings, but I expect at least two additional cuts to federal interest rates during 2025. - I am not confident about the timing of those cuts right now.