The Blubber

Per BI

With the rising prices of most goods, Blackrock expects Americans to have to live with these high prices for years to come. The firm's strategists also expect not to be able to meet its inflation targets.

Previously, the Fed announced its plans to bring inflation down to just 2%. However, strategists think the Federal Reserve won't be able to hit its targets but will need to stop its rate-hike cycle before that.

Strategists released a note detailing what they thought regarding the situation and how they thought that Americans would have to live with inflation. Although they said they do see inflation cooling, they think that it would still remain "above policy targets in coming years."

"The cycle of rapid rate hikes will stop without inflation being back on track to return fully to 2% targets, in our view. We think we are going to be living with inflation."

Blackrock is still open to the possibility of other trends taking over the cooling trend. The strategist also noted that a major recession would be required for the Feds to be able to reach its inflation targets.

Recently, the Feds have also officially predicted a "mild recession" to start later in 2023. Should Blackrock's estimates be correct, this wouldn't be enough to bring inflation down to the Fed's targets.

Officials highlighted how it was important to watch incoming data to learn the effects of an anticipated credit crunch on the economy. Some officials are calling for flexibility for the upcoming decisions.

The Fed's statement saying there would be a "mild recession" was different from what Biden said in February, saying the risk of a recession happening in the US was very low.

In November, Biden said that the US was nowhere near a recession. In his February statement, the US President highlighted "economic growth" and "job creation."

See flow at unusualwhales.com/flow.

Other News:

• Fed staff projected a mild recession starting later in 2023
• Biden has said that the risk of a recession in the US is very low

Resources:

Business Insider