Will early rate cuts boost inflation?

Both Wall Street and the White House are keen to see interest rate cuts this year, at the very least before the November election, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. Recent weak consumer spending might force the U.S. Federal Reserve’s (the Fed) hand, leading to rate cuts sooner rather than later. However, as Philip explains, while earlier rate cuts could be good news for the markets, they could bring about higher inflation. And is the Fed willing to risk that?

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