Express
Capital Economics: Market Overestimates Fed Rate Cut Prospects, US Short-Term Interest Rates Face Rising Risks
Summary: According to sources, Kevin Thozet, a member of the Capital Economics Investment Committee, stated in a report that US short-term interest rates face rising risks, with the market being too confident in the prospects of a Fed rate cut. The US money market has priced in at least two rate cuts this year, reflecting market ...
According to sources, Kevin Thozet, a member of the Capital Economics Investment Committee, stated in a report that US short-term interest rates face rising risks, with the market being too confident in the prospects of a Fed rate cut. The US money market has priced in at least two rate cuts this year, reflecting market expectations of further signs of economic and inflation slowdown in the US. Thozet stated: Considering the resilience of the US economy, policy uncertainty, and the persistence of inflation pressures, we believe this expectation is too high. The trend of long-term US bond yields is more balanced. The 10-year US bond yield, currently at 4.300%, is expected to fluctuate within a range of about 50 basis points around the current level.
Tags:
Link: Capital Economics: Market Overestimates Fed Rate Cut Prospects, US Short-Term Interest Rates Face Rising Risks [Copy]
