Fed Balance Sheet Shrinkage Over Rate Cuts

Dory Wiley thinks the Fed may regret cutting rates again so soon, warning it could lead to a "hissy fit" from the market if they don't deliver. Instead, Wiley believes the Fed should focus on shrinking its $6.6 trillion balance sheet, which he thinks is distorting the term structure of interest rates. On the other hand, Wiley is bullish on names like Nvidia (NVDA), citing its "massive" margins and growth potential, and thinks the stock could run higher despite already being a market darling. He also likes the potential for regional banks like EFSC and Third Coast to benefit from a rate cut.

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