Avant

【Institution: The current market pricing level for the Fed's interest rate cuts is appropriate】On May 16th, Pepperstone's senior research strategist, Michael Brown, said that after the release of the US inflation report in April, the market's pricing of the Fed's interest rates seems to be at an appropriate level, and the Fed's meeting in June will be held in less than a month. Refinitiv data shows that the market expects a cumulative interest rate cut of 50 basis points this year, with cuts expected in September and December. In contrast, the expected interest rate cut at the beginning of this year was 150 basis points, and the current betting level is also lower than the approximately 85 basis points expected at the end of the first quarter. It is important that the Fed has the ability and willingness to cut interest rates, and its next move will be to cut interest rates.