Economist Nouriel Roubini warned that investors are 'delusional' if they expect the Federal Reserve to cut interest rates next year.Fred Prouser/Reuters Stocks have rallied as investors hope inflation has peaked and the Federal Reserve will turn dovish. But Nouriel Roubini has warned not to expect the Fed to slow its pace of interest rate hikes in 2023. "Markets are expecting a pivot … to me that sounds delusional," Roubini told Bloomberg TV. Markets are "delusional" if they expect the Federal Reserve to start pulling back on interest rate hikes any time soon, according to Nouriel Roubini.The economist — often labeled "Dr Doom" because of his bearish predictions — said the current 8.5% rate of US inflation makes it highly unlikely that the Fed will change its approach in 2023."Markets are expecting a pivot, and the Fed cutting next year," Roubini told Bloomberg TV on Monday.