Generali economists: The market is excessively raising expectations for Fed easing, and it is reasonable to expect another rate cut in January next year.

According to Mars Finance, Paolo Zanghieri, a senior economist at Generali Investments, stated that he and his team believe the rate cuts reflected in the market exceed the cuts that the Fed may implement. “We believe there is a 50% chance of a rate cut next month. Given the limited new data, it is reasonable for the Fed to wait until January of next year to cut rates while signaling a tendency for easing. More importantly, based on hopes for a rapid decline in inflation, the market expects nearly four rate cuts next year, which seems overly optimistic. We expect only a 50 basis point cut by summer.” ( Jin10 )