This morning during testimony in front of the House Financial Services Committee, Federal Reserve Chairman Jerome Powell all but confirmed the Fed will be cutting rates at the upcoming July meeting of the Federal Open Market Committee, which determines short term interest rates in the dollar-based economy.

“Crosscurrents have reemerged…Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook,” Powell declared to nervous financial markets.

The ramifications of this are staggering. President Donald Trump was right. Inflation is almost non-existent currently in the United States. There are few signs of overheating; on the contrary, there are some signs of cooling due to the Fed’s multiple rate hikes which in hindsight look like a mistake.

With the Fed lowering borrowing costs for consumers and corporations alike, look for the economy to skyrocket. US GDP growth will take off to the upside. Pent-up corporate cash will be unleashed.

The timing is amazing.

Barack Obama had basically zero interest rates for 8 years, allowing him to rack up more sovereign debt than all previous presidential administrations combined.

Donald Trump will have Fed easing going into the home stretch of the 2020 presidential election, igniting the economy and allowing Trump to be re-elected, and pay down Obama’s debt in the second term.

#MAGA