Will the Fed Hike Interest Rates? Insights from Julian Emanuel

📈The market believes there is a possibility of a Fed rate hike, leading to volatility.

🔥The move from six expected rate cuts to three was unexpected and well-received by the market.

💰The market is priced for significant growth with expected earnings growth of over 11% for 2024.

📊The CPI data is crucial, and any surprising inflationary readings could impact the broader market.

⚖️The last mile towards achieving the 2% inflation goal is challenging, and further rate cuts may not be as easily digested by the market.

Is there a possibility of the Fed hiking interest rates?

—No, Julian Emanuel believes there is no possibility of a rate hike.

What impact did the move from six expected rate cuts to three have on the market?

—The move was unexpected and well-received by the market.

How is the market currently priced?

—The market is priced for significant growth, with expected earnings growth of over 11% for 2024.

What is the importance of CPI data?

—CPI data is crucial as surprising inflationary readings could impact the broader market.

Why might further rate cuts be challenging for the market?

—The last mile towards achieving the 2% inflation goal is difficult, and the market may not easily digest further rate cuts.

00:00Dan and Mel introduce Julian Emanuel, Senior Managing Director of Evercore ESI.

00:13Julian doesn't believe there is any possibility of the Fed hiking interest rates.

00:25The market thinks there is a possibility of a rate hike, leading to volatility.

01:02The move from six expected rate cuts to three was unexpected and well-received by the market.

01:31The market is currently priced for significant growth, with expected earnings growth of over 11% for 2024.

01:59CPI data is crucial, as surprising inflationary readings could impact the broader market.

03:11The last mile towards achieving the 2% inflation goal is challenging, and further rate cuts may not be easily digested by the market.

03:32Julian's target for the S&P is 4750 this year.