The Federal Reserve has consistently reiterated its stance that it needs to see substantial improvement in inflation before considering rate cuts. However, Macro Institute Chief Investment Strategist Brian Nick joins Market Domination to discuss why he believes the Fed could be compelled to cut rates due to a weakening labor market.

Nick acknowledges that "it's too soon" to determine whether the markets will experience a soft landing scenario or potentially face "something worse." However, he points out the reality that interest rates remain at elevated levels, banks are tightening their lending standards, and consumer delinquency is up. Coupled with a weak labor market, these are signs that point toward "a weaker consumer," Nick says.

Nick predicts that a rate cut could materialize near the end of July, stating his expectation that the unemployment rate "will move up uncomfortably high for the Fed," forcing them to act by cutting rates.

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This post was written by Angel Smith