Investment Strategists Divided on Fed's Interest Rate Plans Amid Stock Rally and Inflation Concerns.

Prominent money managers have stopped chasing the latest stock rally, reasoning that expectations for easier Federal Reserve monetary policy are overblown with inflation still running hot. Should any rate cuts come, they would be intended to halt an economic downturn that also would bode poorly for equity returns, their thinking goes. Barclays Wealth Management just closed out an overweight position on developed market stocks two weeks after initiating it. Legal & General, which manages $1.4 trillion, has cut its equity exposure down to the biggest underweight since the pandemic, concluding that the hit from aggressive tightening will continue to play out on the US economy for months to come.