Leadership from the Federal Reserve have echoed the notion that it needs to take in more economic data before making its next policy decision over interest rates. WIth the latest US Consumer Price Index data revealing inflation is cooling, the question becomes how much more does the Fed need to make interest rate cuts?

Morgan Stanley Chief Global Economist Seth Carpenter joins Market Domination Overtime to give insight into the latest economic data, the health of the economy, and what the next potential move from the Fed might be.

Carpenter says he has been calling for three rate cuts this year and that the inflation report helps bolster his case.

"The market's pricing in a little bit more than two cuts for the rest of the year, so far. We think they get there. Some of the communication from Fed officials today has been, I think, in the same direction. I thought Chair Powell's testimony this week was really important, where he said, we've seen some progress. He called the progress on inflation modest, but that was before today's data. But he also said we have to pay attention to both types of risks. If we stay too high for too long, we put at risk employment. And so I think what today's print does, both gives them that much extra confidence. Inflation is coming down." says Carpenter.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Nicholas Jacobino