The Federal Reserve is set to announce its rate decision Wednesday afternoon, with markets anticipating three rate cuts. Macro Institute Chief capital Strategist Brian Nick and F/m Investments President and CIO Alex Morris join Yahoo financial 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 sector, 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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