Book your ticket to happiness with Sun Express Airlines. This is a

is CBS I on the world with John Bachelor. Here's John Bachelor.

The American economy, the economy of the

of the Keystone State, Pennsylvania, the economy of Lancaster

County, the best county in the Keystone State. I'm joined by my

colleague of many years Jim McTague, formerly Washington editor of Barron's, now a novelist in Lancaster County.

And we begin with general observations of the Federal Reserve, Jim now and again, when he had that other job,

would talk about the Federal Reserve

as the factor that you must take advantage of

when you can possibly withstand its surprises.

Right now the Federal Reserve is not surprising.

It is promised three cuts in 2024.

The timing, however however is profound. Wall Street wants six cuts.

Jim, a very good evening to you. Mr. Powell most recently was on television, 60

minutes I believe, making remarks about three cuts and the

economy and recovery. The inflation story is not done according to Mr. Powell and I

agree with him. The three cuts are what we're talked about

at the end of 2023. Wall Street once March, there was guessing on May. Do you have an opinion Jim good evening to you?

Good evening John. My opinion is late August even September and the reason is because the economy is strong. You know, if you cut interest rates

when the economy is strong, you're adding money to the economy, which is like throwing gas on a fire, so you're going to have a

spike in inflation. I mean, it might be temporary, but you will see a spike as people spend that money chasing goods.

And that will panic investors and crash the market. And the Fed definitely doesn't want to do that so I understand why they're being very cautious and being very cage about when they might actually begin the cut rates.

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