IS THE FED FINALLY WILLING TO CUT INTEREST RATES?
Inflation Moving Towards 2% Target
- New data last week shows CPI and Core CPI continued to trend lower (to 3.0% and 3.3% respectively)
- Although these levels are still above the target, the Fed wants Core PCE at 2%, the trends remain very positive
Economic Trends Suggest Pace Of Growth Is Flattening
- Chairman Powell has noted the softening of the employment market, with the unemployment rate creeping higher
- Loosening labor markets, flat inflation-adjusted retail sales, and other economic trends suggest economic growth is slowing
Investor Perspective Beginning To Shift
- Investor sentiment is beginning to rise as the likely of rate cuts this year increases
- Elevated rates have created unique opportunities for investors stemming from conflicting economic expectations
- The consensus forecast still calls for a Soft-Landing
*Core CPI through June; Core PCE through May
Sources: Marcus & Millichap Research Services, BLS, BEA
Watch Video Below: