Brace for a stock market drop if the Fed’s Powell doesn’t yield to Trump

Nigam Arora
Brace for a stock market drop if the Fed’s Powell doesn’t yield to Trump

Federal Reserve Chairman Jerome Powell has come under increasing pressure from President Trump to cut interest rates by as much as 100 basis points. The stock market now expects Powell to bow to Trump. Wall Street’s consensus may be right — that the bubble in the stock and bond markets may inflate further — but prudent investors ought to be prepared if Powell is defiant.