Yahoo TV

The European Central Bank (ECB) initiated its first interest rate cut since 2019, moving rates down to 3.75% from 4%. WisdomTree Global CIO Jeremy Schwartz joins Market Domination to discuss what this move could mean for the Federal Reserve's next interest rate decision.

"It's one of the first times the ECB has cut before the Fed. So that's a big news statement as well, even if it was expected," Schwartz says.

While the ECB has not committed to any further cuts as it reiterated it would be data-dependent, the CIO notes that the move may impact the euro and create volatility around investing in Europe: "You should think more about the stocks being cheap, not necessarily wanting to go long the euro."

All eyes are on the Fed's next interest rate move. Schwartz explains that as inflation is coming down, the Fed doesn't need to be as restrictive. Ultimately though, he explains, "it comes down to what is the data they're watching? And do they have that confidence?"

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

This post was written by Melanie Riehl