'Policy mistake' is off the table for the Fed: Neuberger Berman's Kantor on possibility of rate hike

• Fed's 'policy mistake' rhetoric is off the table, with Powell recognizing the supply-driven oil shock.
• Kantor suggests the Fed should watch and wait, being prepared to cut rates rather than hike, as long-term inflation expectations are measured.
• He highlights significant R&D and CapEx spending by 'Magnificent 7' companies as a strong underlying driver for the economy.
• Notes the surprising underperformance of traditional safe assets (bonds, gold) and Mag 7, while commodity prices have rallied.

Charles Kantor of Neuberger Berman believes the Fed's 'policy mistake' rhetoric is off the table, as Chair Powell acknowledges the supply-driven nature of the oil shock. He advocates for the Fed to pause rate hikes and be ready to cut, emphasizing that long-term inflation expectations remain anchored and innovation drives the economy.