Reported 8 months ago
Investors who were anticipating rate cuts from the Federal Reserve in the U.S. may be disappointed as analysts caution that the market could be mistaken about the timing and extent of future rate cuts. UBS analysts stated that investor expectations for Fed rate cuts have been a major driver of market sentiment since the beginning of the year. However, they emphasized that whether the Fed cuts rates in September or December, it will not have any substantial impact. Co-founder of Kynikos Associates, Rubinstein, predicted that the Fed is unlikely to cut rates before the November election to avoid excessive political turmoil. Former U.S. Treasury Secretary Summers also pointed out that the Fed and investors have a severely wrong view of inflation trends, warning against expecting a continual slowdown in inflation or significant rate drops.
Source: YAHOO