‘When the Fed actually cuts,’ the market could surprise: Morgan Stanley’s Mike Wilson #shorts
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Nothing was said
This guy has no idea what’s going to happen, just like everyone else!
Capture the video in 1 minute 🚀⬇️
*Introduction*
The discussion revolves around the potential impact of the Federal Reserve’s interest rate cuts on market dynamics.
*Main Points*
1. There are two main perspectives on the Fed’s potential rate cuts: a gradual adjustment or a more aggressive approach.
2. One camp believes the Fed will cut rates two or three times this year, leading to a midcycle soft landing similar to the mid-90s.
3. The other camp thinks the Fed will realize they are behind the curve and will need to cut rates more aggressively, which is typically unfavorable for equities.
4. The probability of a soft landing versus a hard landing is uncertain, with estimates ranging from 50/50 to 60/40.
5. Market sentiment has been inconsistent, fluctuating between expectations of a soft landing and a hard landing.
*Conclusion*
The market’s reaction to the Fed’s rate cuts remains unpredictable, with varying opinions on the likelihood of a soft or hard landing.