Core Viewpoint - Analysts from Allspring Global Investments expect the Federal Reserve to lower the benchmark interest rate by 25 basis points this week, but the forward guidance may vary and could carry a mildly hawkish tone [1] Group 1: Interest Rate Expectations - The analysts believe that the market may be overly optimistic about a rate cut in December, estimating a 60%-70% probability compared to the market's pricing of 96% [1] - There is a persistent risk of high inflation expectations, especially amid ongoing economic uncertainty [1] Group 2: Long-term Economic Outlook - The analysts suggest that if economic growth remains resilient, the Federal Reserve may tolerate an inflation rate above 2% in the long term [1]