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Fed Rate Cuts Will Return: Misra

Traders are now fully pricing in the next quarter-point rate reduction in mid-2027, and a growing chorus of Wall Street economists have also pushed their calls for the next cut further out the calendar. Priya Misra, portfolio manager JPMorgan asset management Core Plus Bond ETF, speaks with Emily Graffeo and Matt Miller on "Bloomberg Real Yield." (Source: Bloomberg)

Mar 13, 2026 &03181313202631; 18:18 UTC feeds.bloomberg.com Trending 4/5

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Neutral impact

Sentiment score: -15/100

Moderate impact Medium-term (weeks)

WHAT THIS MEANS

Federal Reserve rate cuts are expected to resume in mid-2027 according to market pricing, with Wall Street economists increasingly pushing their forecasts for the next reduction further into the future. This signals a prolonged period of higher interest rates, impacting bond valuations and equity risk premiums across multiple asset classes.

AI CONFIDENCE

75% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

⇅

10-Year Treasury Yield

^TNXBond

High volatility expected

10-year Treasury yields may stabilize or rise slightly as market reprices rate cut expectations further into 2027

↓

S&P 500

^GSPCIndex

Expected to decline

Extended higher rate environment pressures equity valuations and reduces discount rates for future earnings

↑

Euro / US Dollar

EURUSDCurrency

Expected to rise

Delayed Fed cuts support USD strength relative to EUR as rate differential widens

↓

Euro Stoxx 50

^STOXX50EIndex

Expected to decline

European equities face headwinds from prolonged higher US rates and potential ECB policy divergence

↓

Bitcoin

BTC-USDCrypto

Expected to decline

Extended higher rate environment reduces appeal of non-yielding assets; opportunity cost increases

PRICE HISTORY

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⚡ SUGGESTED ACTION

Favor duration-neutral bond strategies and dividend-yielding equities over growth stocks. Consider overweighting financials and utilities while reducing exposure to rate-sensitive sectors like technology and consumer discretionary.

KEY SIGNALS

Rate cuts delayed to mid-2027Market fully pricing quarter-point reductionEconomists extending cut forecastsProlonged higher rate regime expectedBond market repricing underway

SECTORS INVOLVED

FinancialsFixed IncomeTechnologyConsumer DiscretionaryUtilities

Analysis generated on Mar 16, 2026 at 13:36 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by Bloomberg Markets. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Fed Rate Cuts Will Return: Misra

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