RiskReversal Pod Mike Wilson On The Fed's Latest Rate Cut and What's Next In 2026
14 snips
Oct 30, 2025 Mike Wilson, CIO and Chief U.S. Equity Strategist at Morgan Stanley, shares insights on the macro landscape. He discusses the Fed's recent rate cuts and their implications for the labor market, emphasizing small business hiring and potential recession bottoming. Wilson highlights the significance of US-China relations, Nvidia's role, and forecasts a 20% EPS growth by 2026. He also warns about deflation risks while suggesting equities as a hedge against inflation. The conversation explores sector outlooks, particularly energy and healthcare, for the coming years.
AI Snips
Chapters
Transcript
Episode notes
China Talks Trump Market More Than Fed
- The China-U.S. relationship and Fed policy are the week's two biggest market drivers. Mike Wilson says China talks were most important, then Fed path and balance sheet decisions.
Fed Watches Financial Conditions Closely
- Financial conditions are the Fed's hidden third mandate and are now wobbling. Wilson highlights front-end funding stress and reserves as key policy focus areas.
Monitor Funding Markets, Not Just Rate Cuts
- Expect the Fed to manage reserves and the balance sheet as carefully as rate cuts. Monitor funding markets to anticipate policy tweaks and market volatility.