Quarterly Fed rate cuts ‘makes the most sense’: BofA’s Gapen

With Wall Street expecting an interest rate cut from the Federal Reserve in September, could there be more to follow if the economy keeps pace?
BofA Securities head of US economics Michael Gapen joins Morning Brief to give insight into what potential rate cuts could look like moving forward.
“Initially, the view will be it’s a quarterly cut cycle, so a gradual cut…But obviously the further you look out I mean we can write down these kind of stylized baseline forecasts that assume a lot of things work out well. And I still think that’s right. The economy just rarely evolves in these straight line, smooth fashion. So the further you get out into 2025 and you’re past the election and we know kind of what policies we’re getting, maybe the view is different. But I think initially…cutting quarterly makes the most sense from the Fed.”
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