- BlackRock expects Fed to continue interest rate hikes despite Silicon Valley Bank collapse.
- Fed needs to combat rampant inflation by raising rates, says BlackRock Investment Institute.
- Market expectations for monetary policy differ greatly from BlackRock's view.
- Collapse of Silicon Valley Bank an example of 'financial cracks' from fast rate-hiking campaign.
- Investors should favor short-term government bonds for income, says BlackRock.
BlackRock Expects Fed to Keep Hiking Rates Despite Bank Turmoil
Despite the collapse of Silicon Valley Bank, BlackRock expects the Fed to continue raising interest rates to combat rampant inflation, differing from market expectations for monetary policy.