Sels Sees Room for Fed Rate Cuts This Year As Inflation Moderates Amid Solid Growth

• Sels believes there has been enough progress on inflation for central banks to start easing rates, expecting 3 Fed rate cuts this year • Slightly sticky inflation persists because economic activity and goods demand are quite strong, lifting production, GDP, and equity markets
• Fed does not need inflation to hit 2% target before cutting rates as early as June, just needs to get close enough • Multiple PMIs showing upticks in goods demand amid low inventories, requiring more production and lifting GDP • Central banks signaling sticky inflation may take longer to decline but will come down enough to approach targets