- Markets are sometimes overly optimistic
- We are data dependent
- Inflation is still too high
- Maybe can wait until summer break before contemplating rate cuts
Nagel is a hawk, so there's that to consider when interpreting his comments. The talk of waiting until after the summer though is an intriguing one as that will see the timeline for a rate cut pushed to September. If so, that's a major U-turn that the market has to do in terms of pricing.
