Absent a significant rise in unemployment or a significant decline in GDP, I submit the Fed will be quite comfortable doing nothing at all. I believe Powell has made it quite clear he will not make the Arthur Burns mistakes and if the economy really does stay strong, they will watch and wait for much longer than I believe the market is pricing. they will only move if things start to really spiral out of control, and as of now, there is no evidence that is the case. plus, consider that leading up to the presidential election, you know that the administration is going to pull out all the stops to spend as much as possible to support growth. I fear your desire to see lower interest rates boost the stock market is just that, a desire, and not a likely outcome. if they are cutting it is because things have gone downhill fast, which probably won't help stocks at all.
Absent a significant rise in unemployment or a significant decline in GDP, I submit the Fed will be quite comfortable doing nothing at all. I believe Powell has made it quite clear he will not make the Arthur Burns mistakes and if the economy really does stay strong, they will watch and wait for much longer than I believe the market is pricing. they will only move if things start to really spiral out of control, and as of now, there is no evidence that is the case. plus, consider that leading up to the presidential election, you know that the administration is going to pull out all the stops to spend as much as possible to support growth. I fear your desire to see lower interest rates boost the stock market is just that, a desire, and not a likely outcome. if they are cutting it is because things have gone downhill fast, which probably won't help stocks at all.