The U.S. Treasury market prices a 25 basis point rate cut by the Federal Reserve in November and December, consistent with the median of the dot plot

ChainCatcher news, Felipe Villarroel, portfolio management partner at TwentyFour Asset Management, stated that in recent weeks, investor expectations have become more aligned with those of the Federal Reserve.

He mentioned in a statement, "The U.S. Treasury market is currently pricing in two rate cuts of 25 basis points in November and December, which is consistent with the median of the dot plot." He indicated that the Federal Reserve's baseline scenario is an economic soft landing (a decrease in inflation without harming the economy and labor market) with growth close to the potential growth rate of 2%, which requires setting the neutral interest rate around 3%.