Roth MKM expects 25 basis point cut from Fed next week

Roth MKM Chief Economist and Market Strategist Michael Darda is looking for a 25 basis point cut to the Federal Reserve funds rate on November 7 following this morning’s jobs report. With core inflation running in the low 2%’s on a three-and-six-month annualized basis, bond market inflation expectations anchored at low levels despite recent interest rate volatility, and the ISM Manufacturing Index weak in October, “the intellectual center of gravity on the FOMC still leans toward lowering policy rates, albeit at a slower pace,” the strategist tells investors in a research note.