Experts from the investment company BlackRock forecast that the inflation rate in the US will remain at 3% in 2024. They believe the main reason for this trend is the intensification of geopolitical fragmentation. Specifically, the deterioration of international relations and the increase in competition between countries, as well as the role of intermediary states like Mexico and Vietnam, are expected to contribute to maintaining high levels of inflation.
The Federal Reserve System of the USA (FRS) has set a target inflation rate of 2%, and only upon reaching this level will the regulator consider the possibility of lowering the interest rate. However, according to BlackRock’s forecasts, no significant improvement in the situation is expected in 2024. This is also confirmed by BlackRock’s geopolitical risk index, which has been approaching a value of 0.5 since the end of 2023, comparable to the risk level during Russia’s invasion of Ukraine.
The FRS’s policy directly affects the market for crypto assets, and experts from Goldman Sachs also predict that the FRS will not lower the interest rate at least until the second half of 2024. This means that investors and market participants should be prepared for the continuation of the current economic policy and its impact on financial markets.
