Expect a wait-and-see meeting from the Fed this week, says Roger Ferguson

• Ferguson believes the next Fed Chair will likely be one of the 'Kevins' (Warsh or Hassett), leaning towards Warsh, but notes all discussed candidates are credible to the market.
• He expects a 'stand-pat' Fed meeting this week, with no rate changes, as the central bank monitors economic data and inflation.
• Ferguson predicts only one more rate cut by the end of the year, citing inflation still running 'a little hot' and a 'relatively solid' underlying economy.
• The market's resilience is attributed to the strong economy and the positive long-term outlook for AI, despite geopolitical and political uncertainties.

Former Fed Vice Chairman Roger Ferguson expects the Fed to hold rates steady this week, adopting a 'wait-and-see' approach due to underlying economic strength and persistent inflation. He anticipates only one more rate cut this year, fewer than what markets might expect. Ferguson also believes the market is resilient, driven by a solid economy and the positive AI narrative, despite political headlines.