Evercore ISI Predicts Further Fed Rate Cuts Amid Market Concerns

According to PANews, investment banking advisory firm Evercore ISI believes that market concerns over a reduced rate cut by the Federal Reserve are exaggerated. The firm argues that the Fed has strong reasons to support two more rate cuts this year to maintain a robust labor market. In a report released on Friday, Evercore ISI analysts stated, 'Although rate cuts are not guaranteed as more data accumulates, we believe market volatility regarding the Fed's rate cuts in November and December is overstated. Currently, a November rate cut is very certain, and a December cut is highly likely.' Next week, the Federal Reserve's Beige Book will be the most significant event. Additionally, several Fed policymakers are scheduled to speak, which could increase market volatility. Evercore ISI suggests that the Fed is unlikely to be swayed by recent data, as its primary goal is to bring rates back to a 'more neutral level to maintain a strong labor market while inflation returns to target levels.'