‘Fed begins to cut rates in June,’ Deutsche Bank economist forecasts

Richmond Federal Reserve President Tom Barkin spoke in North Carolina on Wednesday morning saying “A soft landing is increasingly conceivable, but in no way inevitable.” Many on Wall Street are patiently awaiting the Fed’s next move.
Matthew Luzzetti, Deutsche Bank Chief US Economist joins Yahoo Finance to discuss what he expects from the Fed in terms of its next move and how the economy may react.
“Our baseline is that the Fed begins to cut rates in June, that they cut rates by 175 basis points over the course of the year. That’s a little bit delayed relative to market pricing at the moment. It was quite aggressive relative to market pricing a month or two ago. I think key to our view is that you get inflation data which is a little bit firmer, over the next few months, that gives the Fed some pause for a rate cut by March, but also that the labor market deteriorates more than what the Fed anticipates which allows them to cut rates more aggressively.”
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