JPMorgan: The market is "overly optimistic" about the Fed's interest rate cut.

According to BlockBeats news on January 31st, as reported by Coindesk, the financial markets may be overly optimistic about the speed and pace at which the Federal Reserve will relax its policy through interest rate cuts this year. Morgan Stanley's macro strategy team led by Shrenick Shah stated that key areas of inflation closely monitored by the Federal Reserve have yet to show clear signs of deflation. They stated that the Federal Reserve's commitment to combat potential inflationary rebound is still underestimated, which opens the door for adjustments in risk assets. Previously, with the expected decline in inflation in 2023 and the Fed's indication of a shift towards interest rate cuts at the December meeting, expectations for rate cuts have become widespread. According to data from the federal funds futures market, traders expect a rate cut of 140 basis points this year, nearly twice the rate cut indicated by the Federal Reserve's December rate forecast (the so-called dot plot).