BlackRock warns that investors are making a mistake by betting on the Fed to cut rates

Investors are too confident the Federal Reserve will cut interest rates this year and could pay the price later, according to asset management giant BlackRock and others on Wall Street.

Market pricing as of Tuesday morning pointed to the Fed holding its benchmark interest rate at current levels and then starting to reduce as early as July, according to CME Group calculations. Those cuts could total as much as a full percentage point by the end of the year, the firm’s FedWatch gauge shows.

That comes despite multiple public statements from central bank officials, who…