The US stock market closed mixed following the November jobs report, with investors focusing on what it means for the economy and the Federal Reserve’s next move. RJ Gallo, a senior portfolio manager at Federated Hermes, joined Yahoo Finance to discuss the expected changes in interest rates.
Gallo believes that the recent jobs data was “generally favorable,” but thinks the Fed wants to reduce interest rates from their current level to avoid being too restrictive. This is not to combat a potential recession, but rather to achieve a soft landing and stabilize the economy.
According to Gallo, there is a high likelihood of another 25 basis point cut in interest rates at the December FOMC meeting. However, he questions what will happen next year and how the Fed’s policy decisions will impact the market.
The Fed’s dot plot will be a key aspect of the meeting, with investors closely watching its implications for future rate cuts.
Source: https://finance.yahoo.com/video/markets-turn-focus-dec-fed-221127818.html