Top Wall Street analyst Tom Lee believes that a Fed rate cut is highly likely, given the “overreaction” in the market.

The Federal Reserve is seen restarting interest-rate cuts in June, traders bet on Tuesday, as government data showed U.S. producer prices were unexpectedly flat last month and weekly jobless claims fell.

Expectations for the next interest-rate reduction are being brought forward after the stock market’s big selloff at the start of the week. Investors had penciled in June as the most likely moment for

Barclays has lowered its expectations; now, it thinks the Federal Reserve will cut interest rates twice this year instead of once. This is due to unclear trade policy and the weakening U.S. job market.

(Reuters) -Softer U.S. labor market conditions against the backdrop of trade-policy uncertainty have prompted Barclays to raise its expectations to two rate cuts by the Federal Reserve for the year from one.