BlackRock: Fed rate cut outlook depends on labor market weakness

Jean Boivin, head of the BlackRock Investment Institute, said the Fed's outlook for rate cuts is likely to depend on whether the labor market remains sufficiently weak. He pointed out that Powell called the latest Fed rate cut "risk management" in response to growing signs of weakness in the labor market, which could mean that future policy action will be highly dependent on data performance. Boivin believes that further weakness in the labor market will provide the basis for more rate cuts by the Federal Reserve. (Jin Ten)