Markets shouldn't focus on number of rate cuts: Strategist
03/26/2024 03:32
The Federal Reserve wrapped its two-day FOMC meeting last week, ultimately deciding not to change interest rates. However, the Summary of Economic Projections revealed that nine members believe there will be three rate cuts by the end of the year. Chicago Fed President Austan Goolsbee, in an exclusive interview with Yahoo Finance, also claims that there may be as many cuts, but refused to give a timeline as to when they might occur. SEI CIO Jim Smigiel joins Yahoo Finance to discuss potential 2024 rate cuts and how they may impact the market: "Just because they put a rate cut in there, doesn't necessarily mean we see or we don't see term premium come back into the market...They are very data-dependent. We have a big release coming out this Friday when the market's closed. If you do see some firming in inflation, to your point, that could take one or two additional off the table. What does that do to the 4.25% that we are seeing today in the 10-year [Treasury yield]? Are we going to revisit that 5% level? That's something that the market really needs to be focused on..." 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 Nicholas Jacobino
The Federal Reserve wrapped its two-day FOMC meeting last week, ultimately deciding not to change interest rates. However, the Summary of Economic Projections revealed that nine members believe there will be three rate cuts by the end of the year. Chicago Fed President Austan Goolsbee, in an exclusive interview with Yahoo Finance, also claims that there may be as many cuts, but refused to give a timeline as to when they might occur.
SEI CIO Jim Smigiel joins Yahoo Finance to discuss potential 2024 rate cuts and how they may impact the market:
"Just because they put a rate cut in there, doesn't necessarily mean we see or we don't see term premium come back into the market...They are very data-dependent. We have a big release coming out this Friday when the market's closed. If you do see some firming in inflation, to your point, that could take one or two additional off the table. What does that do to the 4.25% that we are seeing today in the 10-year [Treasury yield]? Are we going to revisit that 5% level? That's something that the market really needs to be focused on..."
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 Nicholas Jacobino