Trump Wants Cheaper Money—But It Will End In Chaos, Expert Says

Federal Reserve policymakers are set to lower interest rates on September 17th after months of pressure from Trump, ending a nine-month pause and launching what could be an extended rate-cutting cycle. CME Group’s FedWatch Tool shows a 100% probability of a 25-basis-point cut to 4.00% to 4.25% and an 11% chance of a larger 50-basis-point move, according to Benzinga. Traders expect additional cuts in October and December, with odds of 84% and 75%, respectively. Stocks are trading near record highs, but market veteran Ed Yardeni warned the Fed risks overstimulating an already strong economy, citing GDP growth tracking at 3.0% and ongoing labor shortages. Yardeni argued that the labor market’s problem is a worker shortage, and Fed rate cuts won’t solve the undersupply, limiting labor demand. Yardeni Research maintains a bullish outlook, targeting 6,600 on the S&P 500 by end-2025 and 7,700 by 2026.