With tariff hikes looming, inflation seems inevitable, so the Fed is unlikely to lean heavily on QE or deep rate cuts. However, moderate rate cuts are essential to support the struggling job and housing markets. For equities, lower rates would provide a boost, but without aggressive QE, we won’t see the manic market surges of the past.
Though one nuance is that if tariffs spike inflation faster than expected, even modest cuts could be pause……if this happens, it won’t be pretty for the equity, housing and job market.
