BlackRock strategists indicate that the labor market in the U.S. is cooling, but remains stable. This supports the idea that the Federal Reserve will maintain a pause or implement very limited rate cuts, rather than aggressive measures.
According to their analysis, there would only be deeper cuts if employment clearly deteriorates, something they do not currently consider likely. Recent data shows a moderate slowdown, but not a sharp decline, so they expect minimal adjustments in rates towards 2026
