With the consumer price index coming in below expectations for October, markets widely expect the Fed to slow down its pace of interest rate hikes from 0.75 percentage points to 0.5 percentage points in December. Although many reaffirm hopes of a soft landing, BlackRock’s top strategists disagree and remain underweight developed market stocks.
Moreover, Fed Governor Chris Waller said that markets had overestimated the significance of a single data point and that the U.S. central bank still has “a ways to go” on interest rate hikes.
