Inflation is cooling and Federal Reserve policymakers are indicating that there are rate cuts to come in 2024. But Wall Street is still at odds as to how the economy will shape up next year. Matt Stucky, Northwestern Mutual Wealth Management Senior Portfolio Strategist, joins Yahoo Finance to discuss his predictions and how he believes investors should remain cautious.
Stucky lays out his reasons for rate cuts: “Typically when the Fed cuts, they don’t cut 25 basis points at a time. They tend to cut in response to economic weakness. It wouldn’t be surprising for us to see something chunkier than what the market is pricing in, albeit for a response to a economic weakness versus an insurance cut to kind of modulate the real rate of interest that’s out there in the economy. We don’t have a specific number for you, but we do think it’s likely to be a higher number likely than the market’s…
