Wolfgang Koester, Vice Chairman of Saphyre, suggests that the Federal Reserve is likely to implement another interest rate cut in November. He also anticipates negative economic data to be released this week, indicating a potential slowdown in economic performance. Koester's commentary indicates that the Fed's upcoming decisions are closely tied to the electoral landscape.
Negative
With the expectation of a rate cut and potential negative economic data, sectors such as utilities and consumer staples may benefit, as they tend to perform well in a lower interest rate environment. Additionally, any companies that may heavily rely on borrowing could see improved financial health from lowered rates. On the flip side, financial institutions, particularly banks, might experience a downturn in profitability due to reduced interest margins.
Oct 11, 2024, 11:03 AM
Profits at JPMorgan and Wells Fargo both fell from the year-ago period, but those declines were less than what analysts expected.
Oct 11, 2024, 10:21 AM
JPMorgan and Wells Fargo get earnings season going in earnest while a wholesale inflation print is in focus after the CPI surprise.
Andersen Capital Management CIO Peter Andersen joins 'Mornings with Maria' to discuss big bank earnings and weighs in on the Federal Reserve's handling of rate cuts.