Morgan Stanley's Khanduja: 'It's not going to be your typical rate-cutting cycle'

Money Life with Chuck Jaffe

Vishal Khanduja, Head of the Broad Markets Fixed Income team at Morgan Stanley, says with inflation trending downward, labor data will be what the Federal Reserve is most focused on, and as those numbers move the central bank may take a choppy path toward rate reductions. While that may keep the market on edge, Khanduja notes that corporate and consumer balance sheets are very strong right now — which is unusual at the start of a rate-cutting cycle — which combined with reduced inflation and low-but-stable growth should result in a soft landing. Chip Lupo discusses the early holiday shopping survey from WalletHub, which showed that 46% of Americans enter the 2024 holidays still paying off debt they rang up during the Christmas season last year. Investment analyst Kyle Guske of New Constructs puts PGIM Jennison Mid-Cap Growth in "The Danger Zone," saying it's an expensive way to own a bunch of bad stocks, and portfolio manager Bill Davis brings his brand of high-turnover ESG investing to the Money Life Market Call.