The Federal Reserve announced its decision to hold interest rates steady, a move that followed the release of the Consumer Price Index (CPI) report, which remained unchanged in May. To discuss his perspective on Federal Reserve rate cut expectations, Bahnsen Group chief investment officer David Bahnsen joins Market Domination.

Bahnsen notes that the markets are "relieved that there wasn't bad news" in the wake of the CPI data and the Fed's decision. He acknowledges that while these economic indicators initially sparked slight volatility, the markets are reverting to "normal" as they realize that the Fed will not be cutting rates imminently and corporate earnings remain robust.

Turning his attention to the prospect of the Federal Reserve initiating a rate cut this year, Bahnsen says: "They won't cut in September, but they will still take out fifty from the curve by the end of the year." He elaborates, stating, "And the reason for that is that they couldn't cut in July... I think they would've cut a second time in September but not a first time, because now it's just too close to the election."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Angel Smith