The economy is 'now healthy for risk-taking': Strategist

As stock markets (^DJI, ^IXIC, ^GSPC) edge higher, all eyes are on Federal Reserve Chair Jerome Powell's second day of testimony on Capitol Hill, where he's expected to address economic conditions, monetary policy, and more. To provide insight on potential Federal Reserve rate cuts, BMO Wealth Management US Chief Investment Officer Yung-Yu Ma joins the Morning Brief.

Ma anticipates that the Fed will "follow the path of inflation," noting that recent data has been favorable. He argues "the environment now is healthy for risk-taking" and expresses confidence that the Fed will implement rate cuts at some point this year.

Addressing labor market concerns, Ma suggests these issues could become "more front and center" if the Fed delays rate cuts beyond the next few months. "We do think that if the Fed is looking at the totality of the data underneath the hood, not just the headline numbers, the Fed's probably seeing the same softness that we're seeing," Ma tells Yahoo Finance.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith