MARKET OVERVIEW - Investors Hold Divergent Expectations on the Pace and Scope of Fed Rate Cuts

Forex - Jupiter Asset Management stated that investors are facing conflicting macro signals that could lead to increased volatility in the bond markets. The investment managers at Jupiter Asset Management highlighted that although the U.S. economy continues to remain resilient, there could be a slowdown in demand if high real interest rates stay elevated for an extended period. They argued that, given the strength of the U.S. economy, markets have already begun to reduce expectations for further interest rate cuts and assessed that "the future path of the Fed's easing cycle remains uncertain, and investors have differing expectations regarding the pace and scope of interest rate reductions."