Why the Fed can 'stay in pause mode': Liz Ann Sonders
04/03/2024 03:43
US Equities (^GSPC, ^DJI, ^IXIC) have traded lower on Tuesday as investors grow concerned that the first interest cut of the year will come later than hoped. Charles Schwab Chief Investment Strategist Liz Ann Sonders joins Market Domination to discuss why the Fed may not yet have the green light to start cutting rates. Sonders explains that Fed policy doesn't easily map onto market outcomes: "It depends on the why, in terms of what the Fed is doing. It's not as simple as just if we only knew the policy path on the part of the Fed that we would know what the market is going to do. Interestingly, had the market been right at the beginning of the year of a March start and seven rate cuts, not only did we feel that was the market was getting over its skis, I think that would have been a really poor backdrop for the market. That would suggest suggest that we were probably moving into a recession type condition or financial crisis type conditions." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. Editor's note: This article was written by Nicholas Jacobino
US Equities (^GSPC, ^DJI, ^IXIC) have traded lower on Tuesday as investors grow concerned that the first interest cut of the year will come later than hoped. Charles Schwab Chief Investment Strategist Liz Ann Sonders joins Market Domination to discuss why the Fed may not yet have the green light to start cutting rates.
Sonders explains that Fed policy doesn't easily map onto market outcomes: "It depends on the why, in terms of what the Fed is doing. It's not as simple as just if we only knew the policy path on the part of the Fed that we would know what the market is going to do. Interestingly, had the market been right at the beginning of the year of a March start and seven rate cuts, not only did we feel that was the market was getting over its skis, I think that would have been a really poor backdrop for the market. That would suggest suggest that we were probably moving into a recession type condition or financial crisis type conditions."
For more expert insight and the latest market action, click here to watch this full episode of Market Domination.
Editor's note: This article was written by Nicholas Jacobino