Has the FED Finally Reached a Tipping Point

IS THE FED FINALLY WILLING TO CUT INTEREST RATES?​

Inflation Moving Towards 2% Target​

• New data last week shows CPI and Core CPI continued to trend lower (to 3.0% and 3.3% respectively)​

• Although these levels are still above the target, the Fed wants Core PCE at 2%, the trends remain very positive​

Economic Trends Suggest Pace Of Growth Is Flattening​

• Chairman Powell has noted the softening of the employment market, with the unemployment rate creeping higher​

• Loosening labor markets, flat inflation-adjusted retail sales, and other economic trends suggest economic growth is slowing​

Investor Perspective Beginning To Shift​

• Investor sentiment is beginning to rise as the likely of rate cuts this year increases​

• Elevated rates have created unique opportunities for investors stemming from conflicting economic expectations​

• The consensus forecast still calls for a Soft-Landing​

*Core CPI through June; Core PCE through May​
Sources: Marcus & Millichap Research Services, BLS, BEA​

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