According to ChainCatcher, citing Golden Ten Data, veteran market observer Ed Yardeni likened the Federal Reserve's almost certain rate cut to "adding fuel to the fire" in a report to clients.
He pointed out that the S&P 500 index reached a new all-time high on Tuesday. Although the labor market is showing signs of slowing, the overall US economic growth remains robust, so Wednesday's rate cut is not truly necessary. The rate cut is more likely to keep inflation above the Federal Reserve's target while fueling speculative flames in the stock market.