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

CNN’s PM Plug-In is a weekday newsletter to catch you up on important news you may have missed during your busy day. Make sure to subscribe to stay in the know.

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.

Stories people are clicking on today

🕵🏽 Assassination plot foiled: The US and Germany together uncovered a Russian mission to kill the CEO of an arms manufacturer that has been sending weapons to Ukraine. Full story

💰 Price check: Americans weighed down by the high cost of living for the last three years just got some encouraging news on the inflation front. Full story

🐻 Drinking water wars: Turns out Europeans have a very different attitude about it than Americans do. And tourists sure aren't happy. Full story

🔌 Stay plugged in

We're excited to bring you this PM newsletter Mondays through Thursdays right here on LinkedIn. Don't miss the next edition. Subscribe now — and share with colleagues, friends and family.

What did you think of today’s newsletter? Drop a comment below or send thoughts and feedback to pmplugin@cnn.com.

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