Opinion: Market Overpricing Fed's Easing Expectations, Another Rate Cut in January Next Year Is Justified

By: theblockbeats.news|2025/11/24 10:45:57
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BlockBeats News, November 24th, Senior Economist at Generali Investments Paolo Zanghieri stated that he and his team believe that the market's pricing in of rate cuts exceeds the magnitude of rate cuts the Fed is likely to implement. "We believe the probability of a rate cut next month is 50%.

Given the limited availability of new data, it is reasonable for the Fed to wait until January next year to lower rates while signaling an easing bias. More importantly, based on the hope 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 rate cut by summer." (FXStreet)

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