Economist: The sharp changes in market pricing by the Federal Reserve do not reflect the fundamentals

ChainCatcher news, Jefferies Group economist Mohit Kumar stated in a report that the recent significant repricing of the money market regarding the Federal Reserve's interest rate cuts (with a potential cut of up to 125 basis points this year, which has eased on Tuesday) is an overreaction and does not reflect the fundamentals.

It is expected that the Federal Reserve will neither cut rates by 50 basis points in September nor by 100 basis points or more this year, "despite aggressive measures, we believe the fundamentals have not changed significantly." Jefferies anticipates that the pricing in the money market will be reduced.