BlackRock, the world's largest asset manager, predicts that the Federal Reserve will continue to cut interest rates next year. According to Rick Rieder, BlackRock's Chief Investment Officer (CIO), the Fed is expected to cut rates by 25 basis points twice this year. He believes that rates are currently too high relative to the level of inflation and that cuts will continue through 2025. The Fed has already raised rates by 25 basis points this year and is expected to raise them by another 50 basis points by the end of the year. However, Rieder believes that the Fed will eventually need to cut rates to prevent the economy from slowing down too much. "The Fed is going to have to cut rates next year," Rieder said. "Inflation is coming down, and the economy is slowing down. The Fed is going to have to ease policy to keep the economy from going into recession." The Fed's next policy meeting is scheduled for March 21-22. The market will be closely watching the Fed's statement and press conference for any signals about the future path of interest rates.