Investors are being advised by Jean Boivin, the head of the BlackRock Investment Institute, to prioritize global bonds over longer-dated US Treasuries.
According to Boivin, the Federal Reserve is unlikely to cut rates in the near future due to persistent inflation. He believes that while inflation will not spiral out of control, it will not ease enough to prompt a reduction in interest rates. Boivin characterizes the current economic environment as one of adjustment and recalibration rather than the beginning of an easing cycle.