Trump Wants an Interest Rate Cut Now. Will the Fed Oblige?

The Federal Reserve’s decision on whether to lower interest rates or leave them untouched will be made in a unique environment of uncertainty and speculation.

Typically, the Fed is attempting to support full employment while keeping a lid on inflation. But changing the interest rate too early, too late, too much or not enough could destabilize the economy, leading to either rapid inflation or stifled growth, for months and years into the future.

President Trump has been loudly calling for a rate cut soon that would goose up a flagging economy. The most recent decision was to keep rates steady at 2.25 percent to 2.5 percent. The rate-setting committee meets again at the end of July.

Here’s a look at the factors the Fed is considering now, and their potential impact on the economy ahead.

Small-cap winners galore

The big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
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Smarter cryptocurrency investments

The stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.
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