Inflation data ‘just isn’t there’ to support rate cuts: Strategist

Atlanta Federal Reserve President Rafael Bostic told CNBC in an interview that he sees only one rate cut this year, occurring in the fourth quarter. State Street Global Markets Senior Multi-Asset Strategist Dan Gerard joins Yahoo Finance Live to discuss his outlook for Fed rate cuts.

Gerard notes that current market valuations are aligned with expectations, stating that the possibility of a Fed rate cut in June is currently “a coin toss.” Although Fed Chair Powell, he says, is leaning towards cutting rates Gerard thinks “the data just isn’t there yet.”

Gerard emphasizes the significance of the Fed’s data on commercial banking. He acknowledges there is a “good risk-taking environment” within financial markets; however, on the lending front, he notes that “stress is building.”

Despite these concerns, Gerard says that US markets are still “the king,” advising investors to focus on mega-cap stocks and exercise caution with small-cap markets.

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 Angel Smith

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