Fed on Hold, May Cut Rates Next Year: BlackRock's Watson

The transcript discusses the market's optimism during the Fed's rate hike cycle and analyzes the dot plot showing interest rate projections for 2023 and 2024. It highlights the potential for rate adjustments based on economic data, emphasizing the need for a deterioration in economic activity, GDP, and the labor market to justify rate cuts. The future economic outlook is considered, with a focus on inflation and unemployment rates.

What is the current state of inflation in relation to the target?

What signs of economic deterioration are being monitored in the labor market?