US stock market indexes (^DJI, ^IXIC, ^GSPC) eagerly await an interest rate cut to come from the Federal Reserve, with one widely expected at the central bank's September policy meeting. However, uncertainty remains around how aggressive the Fed's approach will be and whether it could even opt for a 50-basis-point reduction.

Rockland Trust Vice President and portfolio manager Michael Sayers joins Market Domination to share his outlook, reacting to BlackRock chief investment officer of fixed income Rick Rieder's comments made on Yahoo Finance's Opening Bid.

Sayers believes the September meeting will result in a 25-basis-point rate cut. He notes the Fed "likes to move unanimously," suggesting a 25-basis-point cut seems more likely than a more aggressive 50-basis-point move.

Regarding the broader economy, Sayers observes that "economic momentum has been strong," although it is now showing signs of slowing, particularly in the consumer sector.

"Ultimately, I do think sooner or later — hopefully sooner — we are going to need some Fed rate cuts to stabilize the economy, especially if we want to see a reacceleration in GDP [gross domestic product] in 2025," Sayers says, adding that fiscal support is currently "keeping the economy afloat."

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This post was written by Angel Smith