BlackRock: The outlook for interest rate cuts depends on whether the labor market remains sufficiently weak.

On September 18, Jean Boivin, head of BlackRock Investment Institute, stated that the prospects for Fed rate cuts are likely to depend on whether the labor market remains sufficiently weak. He pointed out that Powell indicated the Fed's latest rate cut was a result of heightened "Risk Management" concerns regarding weak signs in the job market, which may mean that future policy actions will be highly data-dependent. Boivin believes that the Fed may face pressure in controlling inflation and debt servicing costs—though these pressures are dissipating, if rate cuts boost corporate confidence and hiring activities, inflation could easily reignite. In this context, further weakness in the labor market will provide grounds for the Fed to cut rates more.