If interest rates are lowered the market should benefit as the risk free rate is used in the DCF valuation formula. Plus, it stands to reason that lower interest rates make borrowing money cheaper for companies, and therefore may contribute to higher profits.
Powell is so transparently political that there’s little chance he will do anything to benefit Trump. He always says they’re “data dependent” yet he is making assumptions about tariffs.
BTW Powell is Powell is not an economist. He holds a BA in Politics and has a JD degree.
I don’t disagree at all. My point is that if Powell thinks Trump is happy with higher rates because they’re an indicator of a strong economy, he might just lower rates - even at the risk of igniting inflation.