The $20 Trillion Bet: What If Trump Gets His 300bps Cut?

Summary

  • A 300bps Fed rate cut, as President Trump suggests, is plausible due to fiscal pressures and political maneuvering, not just economic weakness.
  • Likely, it wouldn't happen in one go, but as a series of cuts.
  • The Fed's structure and upcoming appointments make a dovish policy shift likely.
  • I look at what might happen and what stocks and assets are interesting buys today.
  • Looking for a portfolio of ideas like this one? Members of The Dividend Freedom Tribe get exclusive access to our subscriber-only portfolios. Learn More »

President Trump Participates In White House Faith Office Luncheon

Kevin Dietsch/Getty Images News

The day before something is a breakthrough, it's a crazy idea. - Peter Diamandis

Written by Sam Kovacs

Introduction

A 300bps rate cut seems absurd...right? Maybe. Maybe not.

It's what Donald Trump called for last

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of ARE, O, NEE, NKE, BBY, DKS, GS, MS, DB, BCS, BTC-USD, ETHA, IBIT, PEP, RF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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