ChainCatcher news, Baden-Württemberg Landesbank (LBBW) senior fixed income analyst Elmar Voelker said in a report that the new interest rate expectations, or dot plots, to be announced by the Federal Reserve at its meeting next week are unlikely to keep pace with the current rising expectations of rate cuts. He said: "It seems at least questionable whether the forecast adjustments can keep pace with market expectations." The same is true for the 2025 forecast.
Voelker said the dot plot could be a "potential stumbling block to higher bond prices." Markets are speculating that the Fed could slash interest rates by 50 basis points next week, but the bank's recent forecasts only suggest a 25 basis point cut this year.
