The Fed's First Rate Cut

We remain in the camp that the Fed will do everything that it can to avoid cutting rates between now and the end of the year. The biggest challenge for the Fed this year will be retaining 525 longer than is typical following a hiking cycle. If they have underestimated the impact of the credit tightening associated with the regional banking turmoil, then Rates would need to be recalibrated slightly or perhaps even meaningfully lower.