Fed's Easing Bias Seen as Key for Economic Recovery Regardless of Rate Cut This Week

In accordance with TechFlow, on December 10, Shannon Saccoci, Chief Investment Officer of Neuberger Berman's wealth management division, stated in a recent memo that regardless of whether the Federal Reserve cuts rates this week, interest rates will eventually decline, boosting the U.S. economy and creating upward momentum for risk assets. She emphasized that while market expectations for a 25-basis-point rate cut on December 10 have fluctuated, the Fed's overall easing stance remains constructive for the economy and risk markets. Saccoci noted that while timing and magnitude of rate cuts remain uncertain, the ultimate destination is a lower and more accommodative federal funds rate in the second half of next year.