MARKET OVERVIEW - The End of the Fed's Rate Cutting Cycle May Be Nearer

Forex - SEI CIO Jim Smigie stated that the likelihood of the Fed lowering interest rates is still high, but further reductions may occur in the future. Smigie said, “Will the Fed cut rates again? We believe this is possible, but the facts suggest that we are closer to the end of the rate-cutting cycle rather than the beginning.” He added, “While elected President Donald Trump has rhetoric focused on increasing government efficiency and reducing costs, the rise in inflation is a much more likely outcome. Essentially, the FOMC will have to cut rates again in December to avoid the appearance of such an early turnaround after a 50 basis point move, before pausing in 2025.”