BlackRock expects the Federal Reserve to start cutting interest rates in June, with the European Central Bank following closely behind

On January 19th, Laura Cooper, a senior investment strategist at BlackRock, predicted that the Federal Reserve would begin cutting interest rates in June, earlier than the European Central Bank. She expects the eurozone to need more accommodative policies in the future. She forecasts that the Fed will cut rates by 75-100 basis points by the end of the year. She said that the Fed's first rate cut will be "quickly followed by the European Central Bank," and that the Bank of England may cut rates after the ECB, which will have to make larger rate cuts. Traders are betting on a first rate cut by the Fed in May; Cooper stated that markets have become "very active" in pricing and added, "there still needs to be some repricing, which makes us believe there will be some volatility ahead."