The Federal Reserve announced their decision to hold interest rates steady, keeping the outlook of three rate cuts for 2024. WisdomTree Head of Fixed Income Strategy Kevin Flanagan joins Yahoo Finance Live to discuss expectations and outlook regarding Fed rate cuts. Flanagan acknowledges the "changing market outlook," with rate cut expectations continuing to evolve. However, he emphasizes that it's not the timing of rate cuts that matters but rather what it's "going to look like" for markets when they do occur. Flanagan suggests that as inflation remains persistent, "the Fed may not have to wait for inflation to get down to 2%." However, he questions "how will the bond market respond to that" if inflation remains higher than the target but the Fed starts to cut rates, stating "the Fed will need to walk... a fine line" if this is the approach they decide to take. Nonetheless, Flanagan says that even with this scenario, there is "no feeling" that the Fed would have to enter another rate hike cycle at the moment—calling it "the worst-case scenario." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Angel Smith

Read more --->