#Fed Rate Cut Expectations Premature#

Recently, the market has seen an earlier expectation of a Fed rate cut. Both JPMorgan Chase and Citigroup have adjusted their rate cut timing expectations. JPMorgan Chase originally expected the Fed to cut rates in March, but the latest non-farm payroll data showed a strong economy, so they adjusted their rate cut timing expectation to June. Citigroup adjusted its rate cut timing expectation from January to May. The adjustments by both institutions indicate that the market's expectation of a Fed rate cut is being brought forward, possibly due to the recent strong economic data, which has weakened the market's expectation of continued Fed rate hikes, leading to an earlier expectation of a rate cut. However, it is important to note that there is still disagreement in the market about the Fed's rate cut, and the final timing and magnitude of the rate cut will still need to be determined based on future economic data and inflation.