The Federal Reserve is expected to cut rates in December due to signs of economic slowdown, says Anne Walsh of Guggenheim Partners. A “bifurcated economy” shows struggling lower-income consumers, while wealthier individuals and larger companies thrive.

Traders are split on whether the Fed will cut rates again in December. President Trump is considering well-qualified candidates for the next Fed Chair. Walsh believes the Fed will have a more dovish composition regardless of the outcome.

Walsh predicts lower rates and tax benefits will prevent a recession. She sees more room for market growth, especially in technology stocks. Despite concerns about an overvalued market, she believes companies today are financially stable.

Claire Boston is a Senior Reporter for Yahoo Finance. Sign up for the Mind Your Money newsletter for more financial news and advice. Stay informed with the latest personal finance news from Yahoo Finance.

Read more at Yahoo Finance: The Fed will cut in December and again in 2026 as economy turns ‘sluggish’