...if the market is not anticipating a recession but a soft landing, we can say it could be too presumptuous in anticipating such a deep rate cut over the course of next year.
...with spectre of inflation always looming in the background, market expectations of deep rate cuts in the absence of recessionary risks is being hopeful and optimistic. You can't have it both ways - if recession risk is not high, there is no necessity to cut rates drastically - just because the Fed had done 50bps once, Wall St is all eager to project and jawbone more deeper and hastened rate cuts.
