No need to cut rates when things are going so well, says Douglas Boneparth

We just heard some of those big time banking and financial leaders talk about the stickiness of inflation. James Frazier also went on to say that the so-called hard landing, that’s going to be pretty hard from here. What’s your take on the central bank and the need for rate cuts to keep the market rally going? Yeah, I don’t think rate cuts are really the solution here. Higher for longer as the feds mandate, the longer we can stay off 0 interest rate policy and you know, win ourselves off of the last 14 years. It puts, it puts more ammunition in the feds corner if things do, you know, go South. If there is that hard landing, I just don’t see why with some decent prints. I know Jobs was soft on the last print, but you have an economy that’s growing, inflation’s coming down, albeit slow. Why we want to cut rates so quickly right now, while things seem to be moving along right where they are. All right. So you’re not, you’re not in the cutting rate camp. Very interesting, a big, big country and a lot of people think that the markets at least need to see some guidance that the Fed will cut rates. Also want to go to one of your other calls, You’re actually bullish on bonds right now. We’ve seen yields pull back when it comes to the benchmark about 20 basis points in the last week or so. So you’re saying right now is the time to take advantage of higher for longer when it comes to fixing income, yeah, you had the 10 year hitting close to 4.8. You have the two year come down from above 5%. That might have been a good time to get in and take advantage of higher yields if the Fed is going to cut rate and cut rates and I think they will, you still have one to two maybe slated for this year. You’re in a period where you get to clip a high coupon and perhaps take advantage of some appreciation for when rates do come down. So as much as I think they shouldn’t for the time being, I I don’t think there’s really anything stopping the Fed from, you know, getting that one one to two. Although the market may be pricing in no rate cuts this year, but fixed income does look attractive. I said that last time. I’ll say it again, again, you get to clip a high coupon and and perhaps part Deacon some appreciation for when rates are caught. And often as you’re part of a course of people saying that fixed income, especially on the short of the curve is very attractive right now. Going to bring you full circle, we got another Fed speaker speaking today, Neel Kashkari. What he has to say is, is that, is that a market mover or have we finally decided that it’s just going to take longer to cut rates? And do you think investors are more focused on the earnings which have been surprisingly strong? Yeah. I mean, if I was an investor, I’d be focusing on earnings right now. We’re kind of going print to print from one economic print to another in terms of the market rallying or selling off a little bit. So we’ll see if his words have any bearing on the market. Usually when we see the Feds speak, whether it’s Kashkari or or JP, you know, there’s usually some selling off here. So sometimes maybe the Fed shouldn’t speak and just let the market do its thing.