The Fed will maintain high interest rates until early 2024
An expert and investment manager at BlackRock, Karim Shadid, said that the markets during this February priced interest rates at their highest level at 5.4%, greater than the levels estimated in January.
Shadid added, in an interview with Al-Arabiya, that with the Fed reaching this level, it will not cut interest rates quickly, and may continue at these levels for the rest of 2023 and early 2024.
He stated that staying at these levels will be due to inflation, pointing out that the recent inflation numbers were strong.
He stated that value stocks are preferred for investment at the present time, since inflation continues, pointing out that the decline in inflation levels in the coming period will be slow.
He continued, “Also, some technology stocks are preferred for investment in the coming period. On the other hand, other stocks may suffer with the increase in interest rates.”
Shadid said, “BlackRock” prefers to invest in corporate bonds more than treasury bonds.
