Debates as to whether the Federal Reserve should cut interest rates sooner rather than later rage on. Experts have gone back and forth over what could happen to the US economy with some believing it may not matter what the Fed does as the tech sector continues to dominate.
Matthew Luzzetti, Deutsche Bank Securities Chief US Economist, joins Yahoo Finance to give insight into the state of the economy as the Federal Reserve officials make up their minds on when is the right time to cut rates in 2024.
Luzzetti explains how the Fed is considering their cuts: “I think they signaled that from a risk management perspective, they don’t want to cut rates too early. They’re seeing an economy that is performing well, financial conditions that are quite easy with equity markets at record high levels, so there’s nothing really pushing them urgently to move. At the same time, they do believe that policy is restrictive. We do see some of the stresses that that may cause either through regional banks or CRE [commercial real estate] or consumer delinquencies rising, and so I think from the Fed’s perspective, they have what looks like a soft landing in hand.”
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 Nicholas Jacobino
