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Feb 09
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LONG
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Sam Stovall
Chief Investment Strategist at CFRA
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Stovall expects the market to be supported by a potential Fed rate cut at the June meeting. The "bad news is good news" dynamic is in play. Stovall anticipates weak economic data—specifically a low payroll number (around 55k) and declining year-over-year CPI. This economic softening would pressure the Fed to cut rates, which lowers borrowing costs and typically boosts stock valuations. Expectations of Q4 GDP (cited between 4.2% and 5.4%) combined with anticipated declines in headline and core CPI. If inflation remains sticky or economic data comes in too hot, the Fed may delay rate cuts, hurting asset prices. |
CNBC
Expectation of Fed rate cut in June will supp...
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