Brad Paye, associate professor in the Department of Finance, Insurance, and Business Law in the Pamplin College of Business at Virginia Tech, can expand on:
Implications that each decision may have on prices, market volatility, and portfolio strategies for everyday investors and retirement accounts.
Asset pricing
Interactions between financial markets and macroeconomic conditions
About Paye
Brad Paye’s research interests center on asset pricing and interactions between financial markets and macroeconomic conditions. His broader academic interests include volatility modeling, forecasting, econometrics, and the interdisciplinary field of neurofinance.
David Bieri, an associate professor in the School of Public and International Affairs and associate professor of economics, can expand on:
Credibility vs. Politics: A cautious cut fends off accusations of political pressure while preserving Fed credibility.
Diminishing Returns: Markets largely priced this in; the real story is about forward guidance and the pace of future cuts.
Key risk: If the Fed eases too soon, sticky inflation could reignite, forcing sharper corrections later.
As he sums it up: “The Fed is walking a tightrope—moving just enough to calm markets, but not so much that it reignites inflation or undermines its credibility.”
About Bieri
David Bieri also holds an appointment in the Global Forum on Urban and Regional Resilience. His teaching interests are at the intersection of public finance, monetary theory, and history of economic thought. He has held various senior positions at the Bank for International Settlements in Basel, Switzerland. Prior to his work in central banking, he worked in investment banking in London and Zurich.