Andrew Slimmon, Managing Director and Senior Portfolio Manager at Morgan Stanley Investment Management, joined Wealth! to discuss the Federal Reserve’s decision to keep interest rates steady. Slimmon explained that while holding rates too long could potentially weaken the economy, a key indicator of economic weakness has not yet been triggered. He emphasized the importance of watching the two-year yield, which can provide clues about the health of the economy.
Currently, the yield curve is inverted, with the two-year yield higher than the ten-year yield. However, if the economy were to start showing signs of weakening, the two-year yield would start to drop, indicating potential trouble ahead. Slimmon also advised investors to monitor other market indicators such as job growth and consumer spending to gain a more complete picture of the economy’s health.
For more expert insight and the latest market action, viewers can click the link provided to watch the full episode of Wealth! with Andrew Slimmon.
