Generali Investments senior economist Paolo Zanghieri stated that he and his team believe the market is pricing in a rate cut larger than what the Federal Reserve is likely to implement. "We believe the probability of a rate cut next month is 50%. Given limited new data, it is reasonable for the Fed to wait until January next year to cut rates while signaling a dovish stance. More importantly, based on hopes for a rapid decline in inflation, the market expects nearly four rate cuts next year, which seems overly optimistic. We expect only a 50 basis point cut by summer."