Big policy shifts reinforce higher rates

This week's BlackRock Investment Institute commentary provides a deep dive into major policy shifts impacting global markets and investment strategy. Key insights include:

• Higher-for-Longer Rates: U.S. tariffs and Europe’s fiscal expansion reinforce expectations of persistently elevated interest rates and bond yields.
• Market Reactions: U.S. equities fell 3% amid policy uncertainty, while German bond yields surged the most since 1990.
• Inflation & Growth: Strong labor markets suggest core U.S. inflation remains sticky, limiting potential Fed rate cuts.
   

For a full analysis, read the report.