Fed Governor Waller sees potential for multiple interest rate cuts in 2025
Published On Jan 16, 2025, 12:23 PM
Fed Governor Christopher Waller indicated there could be multiple interest rate cuts in 2025 if inflation trends downward as expected. Traders have responded by predicting a potential rate cut in May or June, influenced by Waller's comments on inflation and economic data. Waller's optimism is contingent on positive inflation data improvements, which he believes will lead to further policy easing by the Fed.
Stock Forecasts
XLF
Negative
Given the potential for interest rate cuts, financial stocks could face downward pressure, while sectors sensitive to lower rates, such as technology and real estate, may benefit.
QQQ
Positive
The anticipation of lower rates boosts market sentiment for growth-oriented sectors, leading to a positive outlook for technology stocks as borrowing costs decrease, which enhances their valuations.
XLY
Positive
With the expectation of rate cuts, consumer discretionary investments might increase as lower rates create a favorable environment for consumer spending.
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