Why do you think this market can go higher even if the Fed does little?
Host
Ed Yardeni
Market can go higher without Fed cuts because earnings have been phenomenally strong at 10-15% vs expected low single-digit increases
You don't want the Fed to make a mistake - if they wait too long, market would pay for that
Host
Ed Yardeni
Labor market weakness may not be solved by rate cuts since GDP is growing 4% and demand is strong
Housing would be freed up dramatically if Fed cut rates more than once
Host
Ed Yardeni
Last year when Fed cut rates, bond yields and mortgage rates stayed up - may be different this time
Quarter point cut helps narrative that Fed is on the case and reduces risk of mistake
Host
Ed Yardeni
Main concern is melt-up in stock market if Fed lowers rates when economy seems fine with current rates