Viewpoint: The market's expectations for the Federal Reserve to cut interest rates may be overly aggressive

ChainCatcher news, according to Jinshi reports, SEB's chief strategist Jussi Hiljanen stated in a report that the money market is currently pricing in more than 100 basis points of rate cuts by the Federal Reserve by the end of 2026. Considering the inflation risks, this may be too aggressive. He mentioned that if the Federal Reserve indeed meets these market expectations, it could pave the way for the 10-year U.S. Treasury yield to fall to 3.8% next year.