Economists believe the market may be misjudging the prospect of a Federal Reserve rate cut.

According to ChainCatcher, citing Jinshi, Michael Pearce, chief US economist at Oxford Economics, stated that the market is currently ruling out the possibility of a near-term interest rate cut, but this may be a misjudgment. He pointed out that despite stronger economic growth, the labor market has not tightened significantly, explaining why most officials still believe there is a path for interest rate cuts this year. Pearce also stated that the market perceives this situation as having a more pronounced effect on long-term inflation, leaning towards mild deflation rather than exacerbating it.