Corporate earnings growth could reach nearly 12% this year, according to Anastasia Amoroso, chief investment strategist at Partners Group. Speaking on "Bloomberg Open Interest," Amoroso suggested the Federal Reserve now has room to reduce interest rates despite persistent inflation concerns. Her comments come as markets digest mixed economic signals.

While inflation has moderated from peak levels, corporate profitability remains resilient across key sectors. Amoroso pointed to precious metals outperformance as evidence of shifting investor sentiment toward assets that benefit from lower rates. The potential for rate cuts would mark a significant policy shift since the Fed's aggressive tightening cycle began in 2022. Wall Street has been closely watching corporate earnings reports for signs of economic stress, which could influence future monetary decisions. Investors are now positioning for a potential pivot, though Fed officials have maintained a cautious stance on premature easing. Amoroso emphasized that sustainable earnings growth would be critical for supporting equity valuations through any transition period.