Powell will 'cut to appear to not be political' against Trump
Markets assess what's next in the Federal Reserve's rate-cutting cycle as fresh economic data sends mixed signals about the US economy. Thornburg Investment Management head of fixed income and managing director Christian Hoffmann joins Julie Hyman and Madison Mills on Market Domination Overtime to discuss his expectations for the Fed's December meeting ahead of President-elect Donald Trump starting his second term in the White House. Hoffmann says the Fed decision is "becoming increasingly political," explaining his view that "There's a strong reason to believe that they will cut as a political posture." He adds, "I think you saw the change in tone and posture between the press conference, which was largely focused on the emphasis that the Fed is not a political organization, and the following week, where [Fed Chair Jerome] Powell seemed to be wanting to change his optionality and saying, 'Maybe we're going to hold here.'" The portfolio manager outlines that if the Fed doesn't cut at the December meeting, "it could be viewed as a political move. The Fed hates to do anything like that. So I think he might cut to appear to not be political." To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. This post was written by Naomi Buchanan.
