BlackRock: The Fed's easing cycle will last for two years.

On September 19, Jinshi Data News, Rick Rieder, head of the BlackRock Global Allocation Investment Team, said that the key significance of the Fed’s decision to cut interest rates by 50 basis points is that the Fed will continue to cut interest rates over the next two years. Rieder said that as the Intrerest Rate declines, fixed income assets will benefit from it, but the relationship is not linear. He added that the interest rate cut did not provide answers to questions about the economy, the upcoming US election, or how geopolitics will develop. BlackRock still favors assets in the middle of the yield curve, especially those with yields higher than US Treasuries, because these assets provide substantial income, as actual Intrerest Rates are still high.