Will Fed rate cut be 'reactive or proactive'?
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The June ISM manufacturing data fell short of expectations, reigniting speculation about a potential Federal Reserve rate cut. BCA Research chief US equity strategist Irene Tunkel anticipates the first cut could come by the end of the year, partly due to "political uncertainty." However, Tunkel emphasizes that the crucial factor is whether the Fed's rate cut is "reactive or proactive." Tunkel believes that if the Fed cuts rates in response to clear signs of a recession, it may not help equity markets. On the other hand, if the Fed cuts rates proactively while the economy is still strong but slowing gently, it could prolong the strong performance of the market. Tunkel also notes that the longer-term trajectory of interest rates and the perception of the market about it will matter. She suggests that the current market rally, driven by a few stocks, is getting tired and it may be time to take profits.

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https://finance.yahoo.com/video/fed-rate-cut-reactive-proactive-151424850.html