STORY: :: Lisa Bernhard, Reuters
:: Mike Mussio, President, FBB Capital Partners
The Fed held interest rates steady on Wednesday (July 31) but indicated it could reducing borrowing costs as soon as its next meeting in September as inflation continues coming into line with the central bank's 2% target.
Traders are expecting the first move will be a 25-basis-point cut.
Consumers "will see that most immediately" in their bank rates, T-bills and other short-term instruments "that have been paying them more interest," Mussio said. "Believe me, those are going to be the first things that start to adjust downward."
Speaking with Reuters' Lisa Bernhard, Mussio also discussed what could suddenly trigger a huge rate cut ("not a great thing for the economy") versus the preferred "stair-step" decline.
He also explained the tale of two disparate AI-related tech earnings, Microsoft and chip maker AMD, and how embroiled plane maker Boeing, with a newly named CEO in place, could deliver a few "kitchen sink" quarters of earnings before smoothing out its turbulent financials and reputation.
