Markets Bet on Deeper Fed Rate Cuts Despite Still-High Inflation and Lower Growth Forecasts
- Markets overpricing expected pace and depth of Fed interest rate cuts
- Inflation still stubbornly high, needs to come down faster
- Fed unlikely to change 2% inflation target despite mistakes
- 10-year Treasury yields may end closer to 4.5% than 3.5%
- US GDP growth could be 1-2% as economy normalizes from pandemic savings