Market expectations for a Federal Reserve rate cut in December are deemed unrealistic, according to Societe Generale's interest rate strategist Subadra Rajappa. Despite recent comments from Fed Chair Jerome Powell, Rajappa highlighted that markets are overestimating the likelihood of monetary easing. She pointed out that the Fed's previous rate cuts were preemptive, suggesting limited scope for further reductions.
Wells Fargo CEO Charlie Scharf echoed these sentiments, describing potential rate cuts as a form of economic 'risk management.' Scharf commended Powell's transparent communication and stressed the importance of safeguarding against risks like lower growth and higher inflation.
Fed Rate Cut in December Unlikely, Say Experts
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