Stocks: What markets are thinking about Fed’s rate timeline

The US stock market (^DJI, ^IXIC, ^GSPC) is making moves to the upside following the Federal Reserve's decision to pause interest rates and Chair Jerome Powell's press conference. Vanguard Global Head of Portfolio Construction Roger Aliaga-Diaz joins Yahoo Finance to comment on the biggest challenges on the Fed's horizon whenever it starts to cut rates in 2024. "With higher growth this time comes higher inflation. So whether we're going to have that tailwind… is still yet to come," Aliaga-Diaz says. "In our view, inflation will remain stubborn. We think the Fed has more revisions to do in terms of the rate cuts and we feel it will be very difficult for them to get through that first cut unless the inflation picture really starts moving downward." 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 Luke Carberry Mogan.