According to Jinshi, Elmar Voelker, senior fixed income analyst at Baden-Württemberg Landesbank (LBBW), said that the new interest rate expectations, namely the dot plot, announced by the Federal Reserve at its meeting next week are not expected to keep pace with the current rising expectations of a rate cut.
Voelker said it was doubtful that the forecast revisions would keep pace with market expectations, including for 2025. He called the dot plot a "potential stumbling block to higher bond prices."
Market speculation is that the Federal Reserve could cut interest rates by a massive 50 basis points next week, but the bank's most recent forecasts only suggest a 25 basis point cut this year.
