Daniel Ivascyn, Chief Investment Officer of Pacific Investment Management Company (PIMCO), which manages the world's largest actively managed fixed income fund, said that the bond market's expectations for Fed rate cuts are too high. Swap rates in New York on Tuesday afternoon showed that traders expect the Fed to cut rates by a total of 115 basis points this year. This implies a 50 basis point cut at one of the remaining three meetings, starting with the decision on Wednesday. Over the next 12 months, the market anticipates a total rate cut of over 240 basis points, a pace of cuts that is rare outside of recessionary periods. "We think the market may be getting a little ahead of itself on short-term rate cut expectations," Ivascyn, who manages the $163 billion Pimco Income Fund, said in an interview. "There is a risk of inflation reaccelerating in the coming months, which could lead to the Fed actually cutting rates less than the market is pricing in." (Jin Shi)