GDP figures came in softer than expected on Thursday, and with PCE data set to be released tomorrow, investors may wonder what this means for the outlook on inflation and potential Federal Reserve rate cuts. Providence Financial & Insurance Services president Anthony Saccaro joins Wealth! to discuss the inflation outlook.
Saccaro notes that while the economy remains healthy, "that’s part of the issue: everything is softening but inflation." Inflation continuing to run high will ultimately have the biggest impact on consumers: "The higher inflation stays, the softer the consumer is going to become, and that’s probably the biggest worry about the future."
"The Fed is in a pickle right now. The Fed is trying to figure out how they can lower rates. They want to lower rates, they’ve said that at the beginning of the year, but they have to have the economic data to support lowering rates. And they’re not getting that at all," Saccaro tells Yahoo Finance.
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