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Fed appears to be the market's 'friend' this cycle: Strategist

The Federal Reserve has left interest rates unchanged as inflation continues to cool. Oppenheimer chief investment strategist John Stoltzfus joins Morning Brief to discuss the policy decision and how markets are responding to it. "We're still in that period where overall, the Fed still is cautious before it determines that it will start cutting. It is signaling it looks like one cut this year," Stoltzfus explains. He believes the Fed will move forward with a cut "not because it feels the economy is falling into recession or it finds itself in recession, but rather that the Fed feels that it's time to give a down payment to both main street and Wall Street to say, 'Look, we can cut. Here's one cut for the beginning of 2025. Relax.'" He adds that while "the market never trusts the Fed," there has been more dialogue as the Fed has become more transparent: "We think it's more advisable that the market listens to the Fed and realizes that the Fed this cycle appears to be our friend." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl