Analyst: The market has fully priced in the expectation of three interest rate cuts by the Federal Reserve this year

ChainCatcher news, according to Jinshi reports, analyst Adam Button stated that the current trade environment is tough, and formulating interest rate policies is equally challenging. So far, there have not been many signs of a more dovish stance from the Federal Reserve, but St. Louis Fed President Bullard emphasized some downside risks facing the economy yesterday, opening the door for the Fed.

In addition, every Fed official has made similar "wait-and-see" statements, emphasizing the desire to see a 2% inflation rate before cutting rates. The market did not wait for stronger signals, as it raised the expected easing from the Fed this year from 40 basis points a few weeks ago to 80 basis points. The upcoming March meeting still shows a very low probability of rate cuts, but the probability of a cut in the May meeting has now exceeded 50%. At the longer end of the curve, the terminal rate has decreased by about 50 basis points.