Despite the lingering uncertainty, investors remain hopeful that the Federal Reserve will decide to cut rates in the near future. Joining the Morning Brief, State Street Macro Multi-Asset Strategist Cayla Seder discusses why she believes consumer resilience will drive the Fed's decision on rate cuts.

Seder suggests a rate cut could materialize in 2024, although "the biggest risk for markets right now" is if the cut comes too soon. She notes that consumers remain resilient despite the inflationary environment.

According to Seder, the upcoming release of the Consumer Price Index (CPI) data next week is crucial for gaining insights into the consumer's state. She will look for "a rollover in inflation and a move lower in inflation numbers," coupled with continued consumer resilience.

When assessing the markets, Seder cautions that "the progress on inflation is likely going to be very slow." Therefore, she advises investing in sectors like technology and communications, which may offer opportunities amid the current economic landscape.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith