EY chief economist Greg Daco joins Catalysts to discuss what investors will be looking to hear from the Federal Reserve as it kicks off its rate-easing cycle.

Daco wants to see two areas addressed by the Fed as it communicates its outlook for further interest rate cuts. First, he would like to see a "robust forward-looking framework" for cuts rather than the "data-dependent framework that is backward looking." He argues, "We're at a point where the Fed needs to look ahead to the potential risks for the US economy. We have an economy that is still growing at a decent pace, but is undeniably slowing. Labor market momentum, income growth, they're both key indicators that are pointing to a slowdown in economic activity. That is what the Fed needs to focus on."

Secondly, he would like to see the Fed have "much better communication as to the direction of travel." He believes that there needs to be a clearer trajectory of the Fed's cuts, especially as the dot plot leans between 75 and 100 basis points by the end of the year.

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This post was written by Melanie Riehl