Agency: Market pricing of the Fed's rate cut seems reasonable

Odaily Planet Daily News Noah Wise, senior portfolio manager at Allspring Global Investments, said that the market's expectation that the Federal Reserve will cut interest rates three to four times in 2025 and five to six times by July 2026 is reasonable. "Not because this is our expectation, but it strikes a delicate balance between two very different but very likely scenarios." In the first case, inflation remains high and the economy avoids a recession, which means that the Federal Reserve will cut interest rates at a slower pace than the market currently expects. In the other case, the economy declines and inflation falls, and there may be five to six interest rate cuts by the end of 2025, and eight or more interest rate cuts by July 2026, depending on the severity of the recession. (Jinshi)