Eric Lynch on Reuters TV
With the Fed meeting this week to discuss cutting interest rates for the first time since 2020, the big question now is how big a cut? “Whether it’s 25 or 50 basis points, I don’t think it matters too much,” said Eric Lynch, managing director at Scharf Investments during an appearance on Reuters TV on September 13, 2024. “What’s more important is what the general trend looks like for the remaining Fed meetings this year.” Eric shared that consumers will see some relief in the short term for those with variable interest rates on credit cards. He also mentioned that first-time homebuyers will also benefit as mortgage rates start to come down from their recent peak. As for the impact on equities, Eric believes a 50 basis point cut would add “renewed vigor to the equity markets.”
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