Jerome Powell Cuts Rates, Markets Celebrate, and #47 Is Still Not Impressed

“Sorry Jerome, but size does matter…” - Trump, probably….

Yesterday was Fed day, and just as every strategist, their dog, and their dog’s Substack predicted… J-Poww did all of us a favor with another 25bps cut. Of course, we were all hoping for a bigger load (Trump would like a word)... but apparently it was enough to get the market's panties unwadded for a pre-Christmas sugar rush.

(Source: Giphy) 

With that said, the real story wasn’t necessarily the cut, it was the Roy-type family drama behind it. In short, the Fed hasn’t thrown three “no” votes at a meeting in over a decade, and suddenly we’re out here recreating 2014 like it’s a nostalgia act. Hawks mad. Doves mad. Everyone tired. Even J-Poww looked like he wanted to wrap things up and get to the part of his life where he cashes a Goldman signing bonus and ghosts the group chat.

(Source: CNBC) 

Add to the fact, #47 chined in… calling the cut “rather small,” which is probably the nicest thing he’ll ever say about Powell on record. The man has three meetings left in the chair, and you can feel the final-season energy in everything he does. Meanwhile, prediction markets (our modern-day oracle) have Kevin Hassett sitting at roughly a two-thirds chance to snag the gig next. Translation: the era of “transitory” is ending, and the era of “whatever the President wants” is warming up in the bullpen. 

Additionally, the dots didn’t help much either. Just one cut penciled in for 2026, another for 2027, and then the Fed supposedly glides down to 3%. A fairy tale only a central banker could love. Of course, inflation’s still sitting at 2.8%, but the markets didn’t care. Everybody was feeling themselves after Powell’s decision. 

(Source: Giphy) 

Which brings me to this: Where does this circus go heading into January? If I were a betting man, I’d say Powell coasts. Trump sharpens the axe, and Hassett rehearses his acceptance speech. And the rest of us collectively hold our breath for the future of America’s monetary policy. For now, place your bets accordingly… and let the man enjoy his fun-size quarter point cut. Until next time, friends… 

At the time of publishing, Stocks.News does not hold positions in companies mentioned in the article.