Capital Economics: U.S. short-term interest rates face rising risks, and the market overestimates the prospects for rate cuts

ChainCatcher news, according to Jinshi reports, Kevin Thozet, a member of the Caixin Macro Investment Committee, stated in a report that U.S. short-term interest rates face rising risks, and the market is overly confident about the prospects of the Federal Reserve cutting interest rates. He pointed out that the U.S. money market has priced in at least two rate cuts this year, reflecting market expectations that the U.S. economy and inflation will further slow down. Thozet believes this expectation is too high and mentioned that the current 10-year U.S. Treasury yield at 4.3% is expected to fluctuate around 50 basis points up or down from the current level.