Here’s how to invest in stocks when interest rates are higher for longer

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At least one interest rate cut is still on the table for 2024, but in the short term, higher US borrowing costs are here to stay.

Last month, the Federal Reserve held rates steady for the seventh consecutive time and penciled in just one cut this year, down from the three it first projected last December.

Recent economic data has encouraged investors that inflation is cooling again after showing signs of sticking earlier this year. Consumer prices fell in June for the first time since the start of the pandemic, helping lead stocks to record highs.

Still, traders are widely expecting the central bank to keep rates where they are again in July. If the Fed does indeed hold off on changes, interest rates will stay at their current 23-year high until at least September.

How should traders invest in a higher-for-longer rate environment?

?? Read the full story to see what Wylie Tollette, chief investment officer at Franklin Templeton Investment Solutions, has to say.

?? A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up?right here. You can listen to an audio version of the newsletter by clicking the same link.

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Today’s PM Plug-In was produced by CNN’s Kimberly Richardson and Penelope Patsuris.