Analyst Says 'Market's Going To Like What They Hear' During July Federal Reserve Meeting: 'Going To Sound A Lot Like The December Meeting'

David Zervos, Chief Market Strategist of Jeffries, anticipates a positive market response to the forthcoming Federal Reserve meeting, drawing parallels with the dovish tone of the December meeting.

What Happened: On Thursday, Zervos shared his expectations for the Federal Reserve’s July meeting during CNBC’s “Last Call.”

He stated, "The market's going to like what they hear at this July meeting.”

"It's going to sound a lot like the December meeting which was a very dovish-sounding meeting.”

Zervos added that the upcoming meeting will be more about “rhetoric than action” as any further rate cuts will depend on the results of the November Presidential elections.

See Also: Nasdaq, S&P 500 Futures Rise Amid Tech Buoyancy, Bitcoin Gains 2%: Analyst Warns Of Elevated Valuations And Potential Election Volatility

Why It Matters: Zervos’ prediction aligns with recent statements from Federal Reserve officials. Federal Reserve Chair Jerome Powell recently outlined the conditions that would prompt the central bank to lower rates. He emphasized that he would not be "sending any signals" about the timing of any potential policy adjustments.

Similarly, Federal Reserve Governor Lisa Cook highlighted the Fed’s readiness to act swiftly if the unemployment rate surges. She noted that the situation could change rapidly, necessitating a responsive approach.

Read Next:

• 60% Expect June Inflation Data Will Drop, But Most See Costs Still Rising

Image via Federal Reserve

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari