16 January 2024
Equity markets and corporate profit estimates have been growing due to a strong economy, but anticipated interest rate cuts by the Federal Reserve might not be positive for company earnings. Historically, rate cuts often signal an approaching recession, a factor not currently reflected in analysts’ optimistic projections. With some expecting the Fed to cut rates as early as March in response to decreasing inflation and producer prices, concerns are rising that this could indicate a downturn in profits.