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Generali economist: The market is overestimating the Fed's easing expectations, and another rate cut in January next year is reasonable.

Generali economist: The market is overestimating the Fed's easing expectations, and another rate cut in January next year is reasonable.

Chaincatcher2025/11/24 10:22

ChainCatcher reports that Paolo Zanghieri, Senior Economist at Generali Investments, stated that he and his team believe the rate cuts reflected by the market exceed what the Federal Reserve is likely to implement. "We believe there is a 50% chance of a rate cut next month. Given the limited new data, it would be reasonable for the Federal Reserve to wait until January next year to cut rates, while signaling a dovish stance. 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."

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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