The Federal Reserve cut interest rates by 50 basis points in September and followed up with another reduction of a quarter percentage point in November.

Steve Sosnick, Interactive Brokers chief strategist, joined Stocks In Translation to share his perspective. "Why exactly do we need aggressive rate cuts? It's not clear to me why," Sosnick continues. "We've seen disinflation, but the inflation rate has sort of flirted with the 2% target."

Regarding the potential for reacceleration in inflation or a "no landing" scenario, Sosnick believes "it's possible." Sosnick explains that the election may have reignited that possibility. "Tariffs are potentially inflationary... if they are going to go ahead and deport millions of workers, that's inflationary... a lot of that depends on the new administration's policies," says Sosnick

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This article was written by Colin Webb.