What if they don't lower the rate?
Now, let's consider a more pessimistic scenario:
- They don't lower the rate, and there's no helicopter money.
In this case, we'll see a global crisis, and people won't have anything to eat. No one will rush to invest in high-risk assets. Even the stock market will continue to fall — it's already falling, and everyone sees it.
This scenario is possible, especially with the upcoming US elections. Different forces will put pressure on the Fed to influence voter sentiment (to anger, to radicalize, or to give confidence in the future).
Personally, I believe in an optimistic scenario, since we're in the final stage of the crisis cycle (despite the talk about recession). The macroeconomy is also starting to get back on track.
Sooner or later, the markets will rise so fast that many will miss the entire move while waiting for a dip to buy, but there will only be bullish green candles (or not 😂)
