Market Watchers Question U.S. Federal Reserve's Rate Cut Expectations

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Jobs data, price rises, and the strength of the U.S. economy are causing market watchers to doubt the U.S. Federal Reserve's expectation of three rate cuts this year.

Jobs data, price rises and the strength of the U.S. economy are causing market watchers to question the U.S. Federal Reserve's own signaling that it expects three quarter-point rate cuts this year.

Minneapolis Fed President Neel Kashkari said last week that no Fed rate cuts was a possible scenario if inflation continued to move sideways. It comes as a growing number of market participants have raised the possibility of no rate cuts at all this year, including Minneapolis Fed President Neel KashkariGeorge Lagarias, chief economist at Mazars, told CNBC on Monday that rate cuts in the summer were now looking much less likely.

 

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