re: #3 calochortus

Can anyone explain the economic theory behind the idea that the Fed is likely to lower interest rates because tariffs are damaging our economy (so far, I understand that,) so Yay! Let’s drive the Dow up! (Which seems counter-intuitive.)

It’s a hedge against the slowing economy.

The Fed sees Trump’s idiotic trade war and tariffs as a brake on economic activity. Therefore, the Fed will use cuts in interest rates to stimulate the economy to maintain the current rate of activity, where inflation is relatively low and growth remains stable.

It’s a tacit admission that Trump’s trade policy is highly damaging to our economy.