Express
BNP Paribas: Market too optimistic about Fed rate cut expectations
Summary: According to reports from FXStreet, Subadra Rajappa, interest rate strategist at BNP Paribas, pointed out that despite Federal Reserve Chairman Powell clearly stating that a rate cut in December is not certain, the market's pricing of the Fed's monetary policy easing is still too high. She analyzed that the recent two rate cuts were preemptive ...
According to reports from FXStreet, Subadra Rajappa, interest rate strategist at BNP Paribas, pointed out that despite Federal Reserve Chairman Powell clearly stating that a rate cut in December is not certain, the market's pricing of the Fed's monetary policy easing is still too high. She analyzed that the recent two rate cuts were preemptive measures taken to anticipate a deterioration in the job market, but the space for further rate cuts may now be closed. Rajappa stated that the economy is in a relatively strong state, while inflation prospects remain sticky, which is the core message Powell is trying to convey.
