Consumer sentiment slightly beat expectations in September, with a reading of 70.1 surpassing the 69.4 that economists had projected. Allspring Global Investments head of active equity Ann Miletti joins Catalysts to discuss what this print means for future Federal Reserve rate cuts.

Miletti notes that "it's not too surprising" to see a continued positive trend in the economy. However, she emphasizes that one data point cannot single-handedly shift the narrative for Fed decisions.

"I think they [the Fed] gave themselves more room by going 50 [bps] on the first round, and what comes next, I'm not quite sure. It's kind of a fool's game to guess what they do next, but I do think it leaves more flexibility," she tells Yahoo Finance, adding that the upcoming jobs report will likely be a greater focus for markets.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Regarding data's impact, Miletti observes that "everything is good news again." She believes there's "a perception" in markets that "the Fed put is back," suggesting rate cuts are largely priced in regardless of what data may reveal — potentially opening the door for market downside.

"I think things are generally speaking pretty strong in the economy, but it could take a surprise event just to flip the switch and turn things negatively pretty quickly," she cautions.

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This post was written by Angel Smith.