Viewpoint: The market may misprice the timing of the Federal Reserve's interest rate cut

According to a report by Golden Ten, US interest rate strategist Ira Jersey stated that the Federal Reserve will wait until the job market is struggling and concerns about tariff related inflation pass before cutting interest rates. But once there is a rate cut, it will be aggressive. The market may have mispriced the timing of the interest rate cut, but the magnitude of the cut may not have been accurately priced. We believe that the Federal Reserve may cut interest rates to 3%, but it has only started and rapidly reduced rates since the end of this year. Previously, Nick Timiraos, the spokesperson for the Federal Reserve, stated that the April employment report reduces the likelihood of a rate cut in June (although it is still far away), as only one more employment report will be released before then. For now, this means that the Federal Reserve does not need to make any statements regarding the June meeting next week.