The Federal Reserve announced it will continue holding interest rates steady, maintaining its outlook for three rate cuts in 2024. S&P Global Ratings Chief US Economist Satyam Panday and Morgan Stanley Investment Management Co-Head of Broad Markets Fixed Income Vishal Khanduja join Yahoo Finance Live to discuss the rate cut outlook.
Panday notes that while the Federal Reserve dot plot did not affect the rate cuts anticipated for 2024, it did scale back expectations for 2025. He acknowledges that although the Federal Reserve currently has "optionality," the fight against inflation "is going to be bumpy." Panday expects rate cuts to be "delayed" due to continued sticky inflation data and the possibility of "more surprises."
Khanduja believes the Federal Reserve has "lowered the bar on data." He emphasizes that the Fed is aware the economy is running slightly hotter. However, the Central Bank has "maintained" confidence in their plan for rate cuts. He notes the headwinds of this approach could result in a weaker dollar and inflated risk assets.
#youtube #Fed #stockmarket
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