We might see another massive asset value boom. Stock market at all time highs Inflation is in check at 2.4% (very healthy) All while fed rate is at 4.5% (about the norm in recent decades) The current administration wants the fed rate at 1% 🤯 and doing everything in their power to force this. (Personally I don’t think we need the cuts, definitely not that much) That will throw too much gasoline into the fire and we’ll see insane optimism in the markets. If Trump gets it his way and brings down the fed rate, I expect to see assets balloon. There will be new bubbles, real estate, gold, crypto, startups, everything will be in overdrive. Remember, we’ve probably never seen the rate go down aggressively (or at all) when the economy is this healthy. It would be unprecedented. I’m not sure why he’s pushing for it, but the only major reason I can think of is that it’s the only way to pay for the federal deficit. Last year we had a $1.7 trillion deficit. $900m of that went toward interest payments. So if you cut interest rates down to 1%, your deficit is reduced by a 1/3 or so. Furthermore, the economic activity spurs more tax revenue, so it’s easy to cut the annual deficit by over 50% when rates are that low. Unfortunately that will come at the cost of inflation. So hold on to, and buy more assets if you can, whatever your flavor of assets may be.