Federal Reserve Rate Hikes Would Likely Put the Trump Bull Market on Thin Ice
Although rate hikes have historically been positive for the stock market, the artificial intelligence (AI) revolution changes everything.
Overview
Despite periods of outsize volatility, the stock market has a rich history of outperforming with President Donald Trump in the White House. Following respective gains of 57%, 70%, and 142% during Trump's first, non-consecutive term, the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) have gained 21%, 28%, and 34% since his second term began.
But a strong argument can be made that Wall Street's major stock indexes aren't accurately reflecting the danger that lurks beneath the surface. Persistently elevated inflation, caused in part by Trumpflation (inflation driven by Trump's policies), has significantly heightened the odds of a Federal Reserve rate hike on Sept. 16.
Details
If the Federal Reserve acts, it could be the Trump bull market that pays the price.
Source
Originally published at www.fool.com.