Société Générale: The market is overly optimistic about the Federal Reserve's interest rate cut expectations

ChainCatcher news, according to Jinshi reports, Subadra Rajappa, a rate strategist at Société Générale, pointed out that although Federal Reserve Chairman Powell has made it clear that a rate cut in December is not a certainty, the market's pricing of the Fed's monetary policy easing remains overly high. She analyzed that the recent two rate cuts were preemptive measures taken in anticipation of a deterioration in the labor market, but the space for further rate cuts may now be closed. Rajappa stated that the economy is in relatively strong condition, while the inflation outlook remains sticky, which is the core message that Powell is trying to convey.