People feeling good about taking on more risk right now, says Wells Fargo's Michael Schumacher

Summary

Michael Schumacher, head of macro strategy at Wells Fargo Securities, joins Fast Money to discuss affordability policies, fiscal stimulus, and the Fed. He expects the Fed to delay near-term cuts but still cut two or three more times later, sees lower rates and a weaker dollar as supportive for equities, and notes extremely low volatility across markets as a sign investors are comfortable with risk.

• Affordability push helps younger new homebuyers marginally, not a major macro driver.
• Tax refunds and lower tax payments provide a 3-4 month stimulus burst before a policy desert.
• Schumacher does not expect a Fed cut this month; base case is two or three cuts later in the year.
• The Fed needs cleaner data over the next month or two before acting.
• Lower rates and a weaker dollar are viewed as a favorable environment for equities and risk.
• Volatility is very low across VIX, FX, and rates, indicating investor comfort.
• Congress is unlikely to add more fiscal stimulus unless there is a massive downturn.