Fed Holds Rates Steady But Still Eyes Future Cuts Amid Mixed Signals on Economy

• Fed is holding rates steady but still projects 3 cuts in 2024, reinforcing intention to cut rates eventually

• Inflation data coming in is incomplete, making it tough to determine if easing cycle is warranted

• Private credit market "neutralized impact" of higher rates, so effectiveness of rates as a policy tool may be decreased

• Key factor is strength of labor market - as long as employment stays robust, Fed may not cut rates at all

• Earnings growth likely to broaden out from just mega-caps later this year, supporting a market broadening rather than just gains in major indexes