The world market is watching the flow of expert statements at a time when the US Federal Reserve (Fed) demonstrates its hawkish strategy.

At the next meeting on September 21, analysts are betting on a 75 basis point hike in interest rates.

Many experts also believe that markets are overestimating the likelihood that the Fed will be able to cut interest rates next year.

One of them is Nouriel Roubini, a prestigious economist and investor known for predicting the 2008 mortgage crisis. In an interview with Bloomberg Television, Roubini warned that investors are “deceiving themselves” if they really expect the Fed to turn around soon.

U.S. stocks and bonds rose in August after falling to a mid-June low as traders assessed the high likelihood that Fed benchmark rates will peak later this year, according to Marketwatch.

Another widely used indicator of interest rate expectations is the Fed’s dot chart, which is a set of forecasts. According to the latest update released after the Fed’s monetary policy meeting in June, the rate will reach 3.375% by the end of 2022 and then rise to 3.8% by the end of 2023.

However, Roubini believes that both forecasts are too optimistic. Instead, he expects the central bank will need to raise the rate to a peak above 4%, perhaps even to 5%, if the regulator is to succeed in fighting inflation to the 2% target.

Roubini adds that while inflation may have already peaked, the Fed’s monetary strategy is not tight enough to curb price pressure so quickly.