Generali economist: It is reasonable to cut interest rates again in January next year
2025-11-24 10:00:05
Paolo Zanghieri, senior economist at Generali Investments, said he and his team believed the market was pricing in more rate cuts than the Fed was likely to deliver. "We see a 50 per cent chance of a rate cut next month. Given the limited availability of new data, it is reasonable for the Fed to wait until January to cut rates, while signalling an easing bias. More importantly, the market's expectation of nearly four rate cuts next year, based on hopes of a rapid pullback in inflation, seems overly optimistic. We expect only a 50 basis point cut by the summer."
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