BlackRock Fund sells US and UK bonds in response to inflation warnings.

Tom Becket of the BlackRock Group stated that the market is underestimating the risk of high inflation persisting in the United States and the UK. Becket has been selling government bonds from both countries and increasing short positions in long-term US and UK bonds. He expects persistently high prices to hinder interest rate cuts. Traders currently predict that the Federal Reserve and the Bank of England will collectively cut interest rates by about 50 basis points by the end of the year, which contradicts Becket's belief that inflation will remain high.