Markets are overly optimistic about the Fed's interest rate cut, Canadian Imperial Commercial Bank analysis

According to ChainCatcher, according to Kingshin, Canadian Imperial Commercial Bank economist Timothy Music believes that the market's expectations for a sharp rate cut by the Federal Reserve are too optimistic. Despite the unusually weak U.S. non-farm employment data in August and the June data was revised down to negative, the market still mainly bets on the Fed's 50 basis points cut this month. Musial pointed out that most bets are currently focusing on a gradual rate cut of 25 consecutive basis points, and expects the Federal Reserve to maintain policy flexibility after its September 17 meeting and will not commit to a rate cut in October.