Fed must keep cutting rates to avoid US recession - BlackRock

BlackRock vice chairman and director Bob Doll says while the company believes a recession and a prolonged profit crunch can be avoided, investors need to gauge how far the Fed will go to ease monetary conditions. Doll says there is nearly a 100% chance the Fed will cut rates at its next policy meeting on 11 December. BlackRock continues to be concerned about US company earnings growth rates, saying the 13% expectations for 2008 is “overly optimistic and presents a risk in the form of potential disappointments”. “We continue to believe that weakness in the U.S. economy will persist, wi...