The Fed kicked off its easing cycle with a jumbo 50 basis-point rate cut — but subsequent ones will be milder, they say, sharing their forecasts.
U.S. interest rate cuts are unlikely to move at an aggressive pace, say market watchers. The Fed kicked off its easing cycle with a jumbo 50 basis-point rate cut in September — but subsequent ones will be milder, they said. They highlighted the better-than-expected September jobs report, renewed worries around inflation, rising yields and an economy that's still relatively strong.
"We see only 25 basis points of rate cuts in both November and December. We think CPI will not start to meaningfully accelerate until the December headline print which will be reported in early 2025," Landsberg said, citing factors such as strong jobs data and strength in the economy. How to position In that scenario — and with inflation expected to continue being sticky, it's important that investors still have exposure to commodities, said Landsberg.
Michael Landsberg United States Business News
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