Kathryn Rooney Vera, Chief Market Strategist at StoneX, appeared on CNBC to share her views on the Fed's policy outlook and economic trends.
Fed Policy Outlook
Vera suggested that the Fed might implement two rate cuts this year, but not until the second half. She also noted that markets are awaiting tomorrow's employment report, expressing cautious optimism about the U.S. economy.
Economic Growth and Inflation
On the topic of inflation, Vera said that continued economic growth above potential could further increase inflation. Without reducing government spending, inflationary risks may rise. The U.S. economy, which grew by 1.8% last year, is expected to maintain growth through 2025, but this could fuel inflation.
Global Investment Trends
Touching on global investment trends, Vera noted that global private investment is approaching record levels, which is a positive signal for economic growth. However, structurally high inflation could continue to be a problem in the medium term.
Kathryn Rooney Vera emphasized the importance of being prepared for alternative scenarios, despite the expectation of Fed rate cuts. Global investments show positive dynamics, yet inflation remains a key risk factor.
