Analysis: The market's fluctuations regarding the Federal Reserve's interest rate cuts in November and December have been exaggerated

Investment banking advisory firm Evercore ISI believes that market concerns about the Federal Reserve's rate cuts being reduced are exaggerated. This is because the Fed hopes to maintain a strong labor market, and there are compelling reasons for further rate cuts twice this year. In a report on Friday, Evercore ISI analysts stated, "Although rate cuts are not necessarily set in stone with more data accumulation, we believe that market volatility over the Fed's November and December rate cuts has been overstated. As it stands now, a cut in November is very certain, and one in December is also highly likely."

Next week, the biggest event will be the Federal Reserve's Beige Book. In addition, many Fed policymakers will give speeches which may increase market volatility. Evercore ISI believes that it is unlikely for recent data to sway the Fed as its primary goal is to bring interest rates back down to "a more neutral level while maintaining a robust labor market as inflation returns to target levels."