Two Fed rate cuts are still possible in 2024: Strategist

Minneapolis Federal Reserve President Neel Kashkari has struck an optimistic tone regarding potential rate cuts, stating that one interest rate cut from the Fed in December is "reasonable." However, Wells Fargo Global Investment Strategist Veronica Willis joins the Morning Brief to discuss why two rate cuts in 2024 are still possible.

Willis highlights that between now and the end of the year, a slew of economic data points could give the Fed enough "confidence" to enact more than one cut. She notes that if progress on inflation persists, consumer spending moderates, and "the economy softens a little bit" as it approaches pre-pandemic levels, it could pave the way for the Fed to reduce rates twice.

Addressing the potential market reactions to a Fed rate cut, Willis told Yahoo Finance, "The markets really still felt positive about the prospect of any cuts at all, and I think that a lot of that's been priced in. So I don't see a lot more exuberance once the Fed starts to actually cut, but there is that potential for the market to remain strong."

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This post was written by Angel Smith