Home » Business » The Federal Reserve will not intervene to save the markets from the repercussions of the recession By Alborsanews

The Federal Reserve will not intervene to save the markets from the repercussions of the recession By Alborsanews

“Black Rock”: The Federal Reserve will not intervene to save markets from the repercussions of the recession

BlackRock said it would not intervene next year to bail out US stock and bond markets if hit by the severe economic downturn.

Analysts at the US investment firm said in a research note that the Fed’s measures will likely cause a sell-off in stocks next year as the economy enters a recession amid continued monetary policy tightening.

The memo stated, “Major central banks will raise interest rates again this week. Reducing inflation levels means these banks have to eliminate demand, which causes a recession.”

BlackRock added, “We expect central banks to keep interest rates high even during a recession and not intervene to bail out markets.”

The Federal Reserve, the European Central Bank and the Bank of England are expected to issue monetary policy decisions this week amid expectations of interest rate hikes from the three banks.

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