Market shifted rate cut expectations from 7 cuts to 1 in 2024, HSBC's Sels says

The Federal Reserve is set to announce its decision on interest rates Wednesday afternoon, so what does this mean for markets? HSBC Global Private Banking Global Chief Investment Officer Willem Sels joins The Morning Brief to discuss the potential market fallout from the Fed's communication.
Sels believes that a rate cut announcement is unlikely to follow the conclusion of the Federal Open Market Committee's (FOMC) meeting today. He notes that markets have "completely shifted" from pricing in previous rate cut predictions to expecting just one potential cut. Sels highlights that the only scenario in which the announcement could be perceived as "negative for markets" is if Fed Chair Jerome Powell hints at no rate cuts whatsoever this year.
Sels also sheds light on "the other side of the coin" of this higher-for-longer rate environment, suggesting that markets are likely to continue exhibiting strength. He emphasizes that current earnings are driving market performance, describing the strength of earnings as "relatively broad-based."
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