Expect a wait-and-see meeting from the Fed this week, says Roger Ferguson

Summary

Roger Ferguson, former Fed vice chairman, joins Squawk Box to discuss the Fed chair race and the upcoming FOMC meeting. He expects a wait-and-see Fed, sees inflation still hot enough to limit cuts to one more this year, and thinks the market may be pricing in more easing. He is constructive on the U.S. economy and equities, sees AI as a long-term positive, and expects market strength to broaden.

• Roger Ferguson expects the Fed to stand pat at this week's meeting.
• He sees inflation still hot, limiting the number of rate cuts.
• He expects one more cut this year and says markets may be pricing in more.
• He thinks the Fed chair race likely ends with Kevin Warsh.
• He views credible Fed chair candidates as having kept Treasury markets well behaved.
• He is constructive on the U.S. economy and expects strong equity markets.
• He sees AI as an early, long-lasting positive theme.
• He expects market leadership to broaden and 2026 to resemble 2025.