• 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.