Invesco and Carmignac short U.S. Treasuries, skeptical about the Fed's rate cut potential

Managers pointed out that the stronger-than-expected U.S. employment growth in January, companies' large-scale investments in artificial intelligence (AI), and the Federal Reserve policymakers' cautious attitude toward rate cuts all indicate that the economy is too strong for the Fed to implement significant easing. Although some investors still expect rate cuts, other institutions, including BNP Paribas, are skeptical and warn that if rate cuts do not materialize as expected, U.S. Treasury prices will face sharp declines.