Federal Reserve Chair Jerome Powell will provide an update on the Fed’s ongoing rate easing cycle at the November meeting next week. Michael Arone tells Market Domination Hosts Alexandra Canal and Josh Lipton that he believes the central bank will deliver a 25 basis point cut at each of its two remaining meetings in 2024.

“I think the Fed is locked into 25 basis points next week. I think they're likely locked into 25 basis points at the December meeting,” the strategist says. Arone adds the Fed is “acknowledging” that current rates are “well above inflation.” He notes that even with the 50 basis point cut in September, rates are “too restrictive” given the current state of inflation.

“A nice conservative kind of approach to cutting rates 25 basis points at a time makes the most sense, and I think that's what the Fed will deliver next week and in December.”

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This post was written by Naomi Buchanan.