While many Federal Reserve officials have been calling for "gradual" and "modest" interest rate cuts, San Francisco Fed President Mary Daly believes the central bank should continue to reduce rates: “So far, I haven't seen any information that would suggest we wouldn't continue to reduce the interest rate.”

The Morning Brief welcomes FedWatch Advisors Chief Investment Officer Ben Emons to talk more about what the Fed is thinking ahead of its November FOMC meeting.

"In that sense, this Fed is not in a mode here to say, hey, we put everything on hold. Of course they can skip a meeting, that's always been the case, even during tightening cycles," Emons tells Madison Mills and Seana Smith. "But what I think they're assessing is that we gave the economy kind of a push with this 50-basis-point cut. We're seeing the numbers start to play out. If we're right, then we can continue the cut, but maybe at a slower pace. And I think that's what the market is pricing."

Emons also comments on inflationary pressures tied to geopolitical conflicts and escalating tensions in the Gaza region, as well as trends in the US dollar ahead of the 2024 presidential election.

"What markets are looking at is that we currently are, it feels strange, but like a totally certain environment, meaning the markets don't see much still risks. Neither do they see any kind of election outcome uncertainty. In fact there's a view in the markets that this Republican Congress is actually going to happen," Emons says. "So I think it's really that aspect of certainty in markets is the indicator against the commodity markets that are potentially at risk of a flare-up of geopolitics."

To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.

This post was written by Luke Carberry Mogan.