**[BlackRock Contrarian View: The Fed Shouldn't Raise Rates, Warsh's Remarks Are Crucial]** BlockBeats News, September 16 — BlackRock's Global Head of Investment and Portfolio Strategy, Gargi Pal Chaudhuri, stated that the Federal Reserve should keep interest rates unchanged at this meeting, maintaining the benchmark rate within the 3.50% to 3.75% range. Although market pricing indicates a 93% probability of a 25 basis point rate hike, she believes underlying U.S. inflation is cooling: Core CPI rose 0.3% month-on-month in August, while the year-on-year growth rate over the past 12 months dropped from last year's 3.1% to 2.4%. Chaudhuri noted that if the Fed opts to raise rates, it wouldn't be due to runaway inflation or unanchored inflation expectations, but rather because rising oil prices have heightened inflationary risks. More important than a 25 basis point rate change, investors should focus on Federal Reserve Chair Kevin Warsh's post-meeting remarks, including the triggers for the next rate hike, the impact of oil prices, and adjustments to the core PCE calculation methodology. The key lies in whether oil prices have altered the Fed's policy response mechanism. Regarding asset allocation, she pointed out that the traditional 60/40 stock-bond portfolio's hedging effectiveness is weakening. She recommends diversifying into growth assets, income-generating assets, and low-correlation assets. In equities, attention should be given to AI infrastructure, companies with established commercialization capabilities, and high-quality defensive assets. Regionally, she is more optimistic about emerging markets in Asia and suggests taking advantage of the current high yields to allocate fixed-income assets at the front and middle segments of the yield curve. [Original Link]