The great debate over when the Federal Reserve will cut interest rates rages on as the latest economic data rolls in, showing a strong economy and lower inflation. While Wall Street patiently waits from news from the Fed, earnings season is in full swing. James Liu, Clearnomics Founder & CEO, believes that earnings may have more of an impact on the Fed's decision as to when to cut rates than most investors may think. He joins Yahoo Finance to discuss this insight and what investors should consider when managing their portfolios. Liu explains: "If you think about that big tsunami of inflation that happened the last couple of years, really we're past that period now. Now the debate is not whether or not inflation will come down or get back to 'more historical normal' levels. The question is how quickly, and when will we get back to the 2, 2.5% inflation rate that the Fed wants. Based on the glide paths that we are seeing, that could happen in the second half of this year. So if you're an investor that has basically been planning your portfolio strategy around the last two years where you have that bear market in 2022, and sort of a stabilization and rebound of 2023, the next two years with Fed rate cuts will likely look very, very different. It does not mean the market will go straight up. You're going to see a lot of volatility as that happens." 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

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