Bull vs Bear: Will Rate Cuts Still Happen This Year?

Bull vs. Bear is a weekly feature where the VettaFi writers’ room takes opposite sides to debate controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition, Nick Wodeshick and Nick Peters-Golden debate whether rate cuts will still arrive this year.

Nick Peters-Golden: Hi Nick! I’m excited to discuss this with you. This is probably the biggest question facing U.S. investors this year, and I think they’re likely to be disappointed.

Nick Wodeshick: Hey Nick! The feeling is mutual. I totally understand why some investors are uneasy about rate cuts after the latest CPI numbers. However, I still think that some rate adjustments could potentially remain on the table for later this year.

Peters-Golden: Look, I would love for rate cuts to happen. Not only for the many investors out there who’ve priced in such moves, but, who doesn’t love to refinance? However, I fear that’s not going to be the case. Let’s get into it!