Asset management giant Guggenheim: Economic slowdown will prompt the Fed to cut interest rates in December.

On November 14, Anne Walsh, Chief Investment Officer of Guggenheim Partners with assets under management of $357 billion, stated that given the increasing evidence that parts of the economy are slowing down, the Fed may cut rates again in December. Walsh noted that the company is closely following the “polarized economy”—low-income consumers and small businesses seem to be struggling, while the wealthy and large corporations are thriving. “This has created a dual-speed economy, and the Beige Book truly reflects the overall state of the economy, which has indeed become increasingly weak.” These signs of weakness could prompt the Fed to adopt a lower neutral interest rate (perhaps around 3%) and further rate cuts. “We will also see more rate cuts in 2026.”