The Fed May Be Able To Accomplish More by Doing Less
Grateful to CNBC’s Squawk Box for having me on this morning—great to be back on set with Joe Kernen and Becky Quick. Enjoyed the discussion with Veronica Clark (Citi) on how the Fed should cut and communicate.
My view: the message matters as much as the move. A quarter point at the September meeting is baked in. Pay close attention to the Fed’s messaging in the Summary of Economic Projects and Powell’s press conference. Signal too aggressive a path and long-term yields may rise—making it harder for housing and other rate-sensitive sectors to turn around. The Fed may be able to accomplish more by doing less: act without over-committing, and reaffirm that it’s weighing both sides of its dual mandate.
Fed rate decision at 2 p.m. ET today: Here’s what investors should expect