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

Odaily Planet News: Noah Wise, senior portfolio manager at Allspring Global Investments, stated that the market's expectation of three to four interest rate cuts by the Federal Reserve in 2025 and five to six cuts by July 2026 is reasonable. "Not because this is our expectation, but because it strikes a subtle balance between two distinctly different yet highly probable scenarios." In the first scenario, inflation remains high while the economy avoids a recession, which means the Federal Reserve will cut rates more slowly than the market currently expects. In the other scenario, economic downturn and inflation decline could lead to five to six rate cuts by the end of 2025 and eight or more cuts by July 2026, depending on the severity of the economic recession. (Jinshi)