Fed Governor Waller has three possible projections with regards to the economy.

• Economy Stays strong, inflation nearing Fed’s target and unemployment only ticks up slightly. Fed continues with rate cuts.
• Inflation falls materially below 2% for some time. Labor market significantly deteriorates. Fed would suddenly be behind the curve and have to cur rates more aggressively.
• Inflation picks up again, labor market improves. The Fed can pause rate cuts.

The Feds next meeting in November 7th. At that point the Fed will have a lot of data to chew on including the October 31st Personal Consumption Expenditures (PCE).

What this means is the Feds will continue to cut rates unless something extraordinary happens. We have seen tremendous improvement with interest rates and expect that to continue.

If you are on the fence either buying or selling, lets keep pushing forward and run through the tape.