The Fed would be making a mistake by cutting rates this year, PNC strategist says

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Investors are holding out hope that Fed Chair Jerome Powell lays the groundwork for a rate cut as soon as July. Even just one this year would be a mistake, says Amanda Agati, co-chief investment strategist at PNC Financial.

All eyes are on the Federal Reserve this week with a two-day meeting culminating with a rates decision on Wednesday.lays the groundwork for a rate cut as soon as July, followed by two more before the year is out.

"That would absolutely be a policy misstep. With industrial production data coming in ahead of expectations, retail sales ex-autos and gas beating up expectations, earnings season for Q1 beating and Q2 revisions moving in a positive direction, it just seems to me as if the backdrop doesn't warrant that swift of a policy reversal and that cuts really shouldn't be on the table," said Agati on CNBC's "The U.S.

"From a fed funds futures perspective, we're pricing in a near certainty of multiple rate cuts between July and the end of the year and I absolutely think the market's gotten ahead of itself," said Agati. "You saw the real strength and pop in the market following Powell's speech." "I think he was really just trying to say, "Look, we remain data dependent. We're open. If things start to soften materially we'll take the necessary action" and I think the market really read that as rate cuts on the table," said Agati.

 

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Don't do it if it's bad for us! Trump doesn't care what happens to this country!

Well they need to right the wrong 1st...

Fed should not succumb to pressure from the weasels on Wall Street who cry and bitch for every break and easy path. Wall Street is overrun by people who can’t compete - want everything handed to them. Fuck ‘Em. Additionally, POTUS should shut up and let the Fed do its job.

Tell that to Trump.

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