Traders’ Expectations Unmet as FOMC Minutes Disappoint

Wall Street Strategists Caution Against Immediate Rate Cuts

Wall Street strategists are expressing caution amidst market optimism, noting that immediate rate cuts are not likely to occur. The optimism is based on the belief that the US is heading towards a “soft landing” and a “new growth era,” drawing parallels with the 1994-1995 period. However, strategists at Macquarie warn against overstating this analogy, pointing out that there are significant differences in macro conditions between 2023-2024 and 1994-1995. They highlight that the recent cycle has seen more tightening from the Federal Reserve, leading indicators are weak, and there is no “peace dividend” to enjoy, among other differences.