Goldman Sachs: Markets are "overpricing" Fed rate cuts - CNBC

Markets are getting too far ahead of themselves in expectations for the Federal Reserve to cut rates, according to Goldman Sachs President and Chief Operating Officer John Waldron. 

Rate cuts hopes have recently spiked, courtesy of escalating trade tensions. Federal Reserve President Jerome Powell added fuel to the fire earlier this week by expressing readiness to act if trade tensions hurt the economy. 

Key quotes

"The market is pricing in a fairly substantial set of momves by the Fed."

"I worry a little bit that the market is too optimistic about how mch and how soon the Fed will move."

"The market is currently pricing in more than a hundred basis points in cuts now."

"The Fed will be more reliant on the data than they will on the short-term sentiment."