Indeed, lower rates are good for both economic growth and stocks, which explains why the Fed would make this move. Yesterday, Powell stated several times that the base case was for continued growth but that risks to that growth had risen. The faster and earlier they cut rates, the sooner they will exhaust their ability to stimulate. More likely is that we will get continued growth and flat rates, or slower growth and lower rates. If we truly have a data-dependent Fed, which is what I took from yesterday, the Fed will act only as needed.

Source: Forbes June 20, 2019 20:29 UTC