Institution: The market may be overreacting to the signals from the Federal Reserve

ChainCatcher news, Pepperstone analyst Michael Brown stated that the market seems to be overreacting to the messages from Federal Reserve Chairman Powell. The senior research strategist mentioned in a report that the market currently expects only 31 basis points of rate cuts from the Federal Reserve in 2025. The U.S. Treasury market reacted to signals of the Federal Reserve slowing down its rate cut pace, leading to a subsequent sell-off.

Data from Tradeweb shows that the yield on the two-year U.S. Treasury note fell by about 1.5 basis points to 4.342%, while the yield on the ten-year U.S. Treasury note rose by about 2 basis points to 4.522%.