Equity markets (^GSPC, ^DJI, ^IXIC) are mixed as investors remain wary before new inflation data, in the form of the Personal Consumer Expenditures (PCE) index, which will be released later this week. Often called the Federal Reserve’s favorite measure of inflation, February’s data could potentially sway the Fed to make its next monetary policy decision.

Phillip Colmar, MRB Partners Global Strategist, joins Yahoo Finance to discuss the disconnect between consumer confidence and economic data and the state of the market as investors await PCE data. He also explains why he believes investors should brace for a no-landing outcome.

In terms of rate cuts, Colmar says: “We have been pretty clear that there’s no real economic foundation to have any kind of rate cut. That being said, the Fed seems determined to provide –– there will be some uncertainty with inflation data in the near run, and they’ll probably give a window. So we actually think the Fed, even though there’s not an economic foundation in our opinion for it, we think that they’ll probably try to do 50 basis points. But the idea of doing deeper Fed rate cuts and more into 2025 that the bond market has tried to gravitate towards has got to come out.”

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor’s note: This article was written by Nicholas Jacobino