BlackRock 2025 Outlook: AI Craze Continues to Boost US Stocks, and the Fed is Expected to Be Unable to Cut Interest Rates Below 4%

According to Jinshi data on December 5th, BlackRock, the world’s largest asset management company, expects the AI boom to continue to boost the US stock market and support broader economic growth, despite the potential threat to its optimistic forecast for 2025 due to the rise in US debt levels. The institution stated that innovation in AI technology may benefit the US stock market more than European stocks. Although the US economy may cool slightly next year, the Federal Reserve is unlikely to significantly cut interest rates as inflation remains sticky and above the Central Bank’s target. The institution predicts that the interest rate will not drop below the current 4.5%-4.75% range. Ongoing price pressure resulting from geopolitical divisions and infrastructure spending may put pressure on the bond market.