Fed may not be able to cut rates this year, adviser says

Stocks (^GSPC, ^IXIC, ^DJI) are rallying ahead of the highly anticipated Federal Open Market Committee (FOMC) meeting, which will determine the Federal Reserve's decision on potential rate cuts. J.P. Morgan Asset Management Global Market Strategist Jordan Jackson joins Catalysts to discuss the outlook for rate cuts.
Jackson acknowledges "there's real risk" that a Federal Reserve rate cut might not materialize in 2024 at all. He points to dynamics such as persistently high core inflation and a tight labor market, suggesting that the Fed is "not in the position to cut rates." Additionally, Jackson notes that historically, the Fed cutting rates during an election year has often led to a recession, stating, "At best, they may be able to squeeze a cut in in December."
If a rate cut does not occur in 2024, Jackson predicts that markets could see three to four rate cuts in 2025 instead. Asked how markets would react to a higher-for-longer environment if rate cuts did not materialize, the strategist says that "equity markets can stomach it," although he emphasizes that earnings would become crucial for market performance.
#youtube #FederalReserve #stocks
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 (apple.co/3Rten0R) or Android (bit.ly/3t8UnXO)
- Follow Yahoo Finance on social:
X: / yahoofinance
Instagram: yahoofinanc...
TikTok: www.tiktok.com/@yahoofinance?...
Facebook: / yahoofinance
LinkedIn: / yahoo-finance

[@flowerlee4727]

No rate cut until 2034. Correct housing price by at least 30%.

[@alexdasliebe5391]

@1:05 Jobs are bad, according to The Fed. S&P hits record highs over and over , yet can’t afford employees.

[@marcuscook5145]

Not only should there be no cut, but there should be hikes. Big ones. Show the markets you are serious, shake the leverage from the system and reset prices back to normal. It won't be fun, but it's desperately needed.

[@SSGoatanks]

It makes sense for one last rate hike in 2024 because inflation is spiring out of control.

[@KippinCollars]

That super core number is scary. If it pushes up core inflation by half a point, then any moderation in housing won't push down inflation at all.

[@RaniVeluNachar-kx4lu]

He's right. Large Cap companies have tons of cash and that is earning them net dividend income. Apple has about $34.94 Billion, Alphabet has $125. Billion and Microsoft has $25. Billion in Cash on their balance sheets.

[@fee_ic4981]

I'm looking at rates at 8.8% before the Data Starts to change... being there for a while

[@RaniVeluNachar-kx4lu]

We are at a Goldie Locks Rate environment NOW. Really these rates ARE NOT HIGH. I lived in the Paul Volcker period. I know high interest rates. I see current rates as just backing up to historical rates, or as you guys like to say Reversion to the Long Term Mean. These are now the new true cost of Capital. Just get use to it. Buy what you need and pay how much you can afford. That's now true for individuals, businesses and governments.

[@joeyl.rowland4153]

The FED needs to hike rates by 100 basis points. May 1. 100 points. Get inflation under control, or J Powell is just a coward. Rate cuts can wait until June of 2025.

[@ambition4195]

But inflation was transitory. Isn't 😂

[@B_knows_A_R_D-xh5lo]

money 👌🏿😳👌🏿😳👀🤑🤑🤑🤑🤑🤑🤑🤑🤑🤑🤑💰💵

[@RaniVeluNachar-kx4lu]

I see no big Equity rally for the rest of the year. We will be range bound, sure some exceptions will emerge. But what we have here is the Financial Markets and Commentators crying for the next Bubble Get Rich Quick Rally, but unfortunately followed by a Get Poor Collapse. Now people need to be realistic in their expectations and guess what? They need to move some Capital out of Equities and into Debt instruments an as long as short term rates are this, just keep 20-30% in cash. Remember, the Market is more likely to go sideways and then down when it realizes that it's not getting any rate cuts in 2024 and maybe even ALL OF 2025 TOO! Now if that psycho Trump get's reelected, then all bets are off as he is really a financial anarchist and whatever he does will benefit TRUMP and TRUMP Inc. and NOBODY else.