📝 Market Fed Rate Cut Call Has Been Wrong Before: Nordea

We get both fresh CPI-readnings and the last FOMC meeting of the year. We expect their new economic projections to revise the outlook for inflation lower, but higher for GDP. They will remove the additional rate hike, and still call for 50bps of cuts next year. Far less than the 125bp the market is calling for. If it will be a big enough wake-up call for the market is still unknown. This is at least the 6th time the market is pricing near-term rate cuts in this cycle, we are not sure they have gotten it right this time either.

-Nordea