Inflation at 3% isn’t the problem — it’s the expectation that interest rates will soon fall, asset manager says
By Federal Reserve chair Jerome Powell.Aaron Schwartz/Xinhua via Getty ImagesMarkets are too optimistic about the prospect of rate cuts, SEI’s James Solloway told MarketWatch.Inflation is still above the Fed’s 2% target, while the labor market also remains strong.This means interest rates are likely to stay at higher levels for longer.Markets are far too optimistic about…