Analysis: The Federal Reserve's interest rate cut is "adding fuel to the fire" for the stock market

ChainCatcher news, according to Jin Shi reports, senior market observer Ed Yardeni compared the almost certain interest rate cut by the Federal Reserve in a report to clients to "adding fuel to the fire."

He pointed out that the S&P 500 index reached a new all-time high on Tuesday. Although the labor market shows signs of slowing down, the overall economic growth in the United States remains robust, so the interest rate cut on Wednesday 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.