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MNI INTERVIEW: Quarterly Fed Cuts To Start In Dec - Reinhart

MNI speaks to Vince Reinhart, former director of the Fed's division of monetary affairs, about the latest Fed decision.

The Federal Reserve is likely to begin cutting interest rates at a quarterly pace starting in December, and the bar to significantly deviate from that plan will be high, Vincent Reinhart, former director of the Fed's division of monetary affairs, told MNI.

"It really does feel like one and done in 2024. We are not expecting the rate cut until December," said Reinhart in an interview. "The Fed is on this slow march downward a quarter point every quarter starting in December, unless activity softens and then they cut a lot," he said. Discrepancies in market pricing is "just a matter of what probability do you attach to activity softening."

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The Federal Reserve is likely to begin cutting interest rates at a quarterly pace starting in December, and the bar to significantly deviate from that plan will be high, Vincent Reinhart, former director of the Fed's division of monetary affairs, told MNI.

"It really does feel like one and done in 2024. We are not expecting the rate cut until December," said Reinhart in an interview. "The Fed is on this slow march downward a quarter point every quarter starting in December, unless activity softens and then they cut a lot," he said. Discrepancies in market pricing is "just a matter of what probability do you attach to activity softening."

Keep reading...Show less