Wall Street traders betting on Federal Reserve rate cuts might want to pump the brakes. Bloomberg Chief U.S. Economist Anna Wong is throwing cold water on market optimism following Fed Chair Jerome Powell’s latest speech, and her data tells a compelling story about why the central bank isn’t rushing to ease policy.
Powell gave a tepid indication of possible cuts on Aug. 22 as he noted a high level of uncertainty, according to CNBC. But Wong’s takeaway cuts through the noise with surgical precision: while the bias leans toward a cut, markets are pricing in far more certainty than the economic data actually supports.
