**BlackRock's Larry Fink Disputes Market Expectations of Major Fed Rate Cuts**

In a discussion during the Berlin Global Dialogue 2024 conference, BlackRock Inc. CEO Larry Fink expressed skepticism about the market's projections for significant interest rate reductions by the Federal Reserve. Fink argued that the market is overly optimistic about the extent of the anticipated cuts, given that the US economy remains robust.

"I don't see any landing," Fink conveyed to Bloomberg Television's Francine Lacqua. He critiqued the current market outlook, stating, "The amount of easing that's in the forward curve is crazy. I do believe there's room for easing more, but not as much as the forward curve would indicate."

Presently, money markets suggest a 33% probability that the Fed will implement another half-point rate cut in November. They also forecast a total of around 190 basis points of easing by the end of the next year. Fink, however, finds it challenging to envision such a scenario unfolding, pointing to current government policies which he perceives as more inflationary rather than deflationary.

In September, the Federal Reserve implemented a half percentage point reduction in borrowing costs, marking the first such cut since 2020 and representing a larger-than-usual adjustment. Following this move, there has been considerable debate among traders and analysts about how the Fed will manage the scale and timing of future easing measures.

Federal Reserve Chair Jerome Powell recently indicated that rate reductions would occur "over time," while underscoring that the US economy remains fundamentally sound. Powell reiterated his belief that inflation is on track to reach the 2% target.

Fink noted a divergence within the economic landscape, with some sectors struggling while others perform exceptionally well. "We spend so much time focusing on the segments that are doing poorly," he remarked.

Despite concerns surrounding asset valuations and geopolitical issues, Fink is confident that the market is not at risk of systemic failure and that corporate earnings will continue to be strong. He emphasized the risk mitigation benefits of global capital market expansion, stating, "There is actually less systemic risk today than ever before."