Fed Meeting -- How Many Interest Rate Cuts Will 2019 See?

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By now, you're all tired of hearing there will be an interest rate cut in July. 

Well, there will be, but the next question is how many rate cuts will the Federal Reserve enact for all of 2019? 

With the ten-year treasury yield at 2.05% and the S&P 500 up 20% year-to-date, both fully baking in a near 100% chance of a rate cut, the question now becomes what is going to move asset prices even higher, and will the Federal Reserve have to cut rates multiple times in 2019? 

The economic data has been unimpressive. GDP came in slightly better than expected, but at 2.1%, there's certainly no argument for a rate hike. This past week, Jason Pride, chief investment officer at Glenmede Wealth Management ($42 billion AUM) and Josh Emanuel, chief investment officer at Wilshire Funds Management both said investors may be looking for multiple rate cuts when the Fed meets Tuesday and Wednesday. The decision will be made Wednesday.

Emanuel also pointed out that a trade agreement between the U.S. and China, while a boon to economic growth, might actually be a negative. It would make the Fed less compelled to enact more than one interest rate cut. 

You can watch that full interview here.

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