Fed Decision Guarantees Market Disappointment, Says BNY Wealth’s Levine

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Alicia Levine, head of investment strategy and equities at BNY Wealth, discusses the lack of market conviction on the size of an interest rate cut from the Federal Reserve as she sees the start of a rate cutting cycle that will last “the next 18 months, at least.”

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The Fed should hold, because the economic data is saying we are at neutral rate. What is the market priced for? Definitely not that. It appears the stock and bond market is currently priced as if at least 300bps worth of cuts have already happened.

KungPowEnterFist
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Don't do it JP. Core inflation is still rising. Heed the ghost of Arthur F. Burns.😳

paulbunyan