Fed March Rate-Cut Hopes Are Optimistic, DoubleLine’s Sherman Says
- Firm’s deputy CIO says inflation rate trajectory is right
- Markets are pricing in a Fed rate cut as early as March
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Wall Street’s expectations that the Federal Reserve will cut interest rates as early as March are premature, according to DoubleLine Capital’s Jeffrey Sherman.
“At this stage, we see core inflation has been dampening, the trajectory is right, but the market is definitely extrapolating this into that the Fed is going to normalize policy back to a much lower rate,” the deputy chief investment officer said on Bloomberg TV Thursday. “It just seems it’s a little optimistic today to think that’s going to happen so soon, as early as March.”