Pennsylvania Trust

Jon Heckscher Quoted In USA Today On Possible Rate Cut

Jon Heckscher Quoted In USA Today On Possible Rate Cut

Jonathan M. Heckscher, Chief Investment Officer at Pennsylvania Trust weighed in on what might happen if the Federal Reserve decide to cut rates.

“Jonathan Heckscher, chief investment officer of Pennsylvania Trust, thinks the Fed rate cut will drive stocks higher this year. And while the move is largely priced into stocks, he says that any Fed signals Wednesday of another rate reduction later this year could nudge stocks higher.

More broadly, Heckscher believes the Fed’s move Wednesday will support the market for the next six months. But by the first half of next year, he says, the trade conflict needs to be resolved and the global economy must strengthen, bolstering corporate earnings.

Otherwise, he says, feeble business hiring and investment will begin to hurt consumer spending, which makes up about 70% of economic activity, further dampening corporate profits and stocks.

‘That will start to trickle down into the economy over time,’ Heckscher says.”

Click here to read the full USA Today article.