The Federal Reserve is set to announce its rate decision Wednesday afternoon, with markets anticipating three rate cuts. Macro Institute Chief Investment Strategist Brian Nick and F/m Investments President and CIO Alex Morris join Yahoo Finance Live to discuss their outlook on the Fed's decision.
Nick notes markets and the Fed are "aligned," meaning expectations of three rate cuts have already been priced into the market, resulting in "not that many fireworks" following tomorrow's announcement. The strategist suggests that markets are headed towards "the longest Fed fund rate plateau," so investors are looking for a potential "break in the economy."
Morris believes rates will be held steady, although he "wouldn't be surprised" if there were outlying factors that pushed the Fed to implement fewer rate cuts instead. However, he believes "the odds of that are low." He notes that the timing of rate cuts is uncertain; however, with the presidential election coming in November, he highlights that "the Fed is politically aware," seeking to avoid cuts or spikes appearing to "favor" any presidential candidate or party.
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Nick notes markets and the Fed are "aligned," meaning expectations of three rate cuts have already been priced into the market, resulting in "not that many fireworks" following tomorrow's announcement. The strategist suggests that markets are headed towards "the longest Fed fund rate plateau," so investors are looking for a potential "break in the economy."
Morris believes rates will be held steady, although he "wouldn't be surprised" if there were outlying factors that pushed the Fed to implement fewer rate cuts instead. However, he believes "the odds of that are low." He notes that the timing of rate cuts is uncertain; however, with the presidential election coming in November, he highlights that "the Fed is politically aware," seeking to avoid cuts or spikes appearing to "favor" any presidential candidate or party.
About Yahoo Finance:
Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.
- Get the latest news and data at finance.yahoo.com
- Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance
