Too many Fed rate cuts could cause stocks to outrun economy, warns money manager of $140 billion

partner, tends to go with the market consensus, saying that Powell was "relatively clear that this was an insurance cut."

"You don't buy insurance once," Novogratz told CNBC in a later interview. "The last four cycles were at least three cuts. I'd expect at least three cuts. They are going to cut again next month." "You have a decent U.S. economy. You're throwing fuel on it. You could see the stocks go higher," concluded Novogratz, founder of cryptocurrency focused firm, Galaxy Digital.

Critics of the Fed's policy of holding rates at historically, near-zero levels for too long after the 2008 financial crisis argue that stocks were, and maybe still, are being artificially pushed higher. Investors were forced to take risks they might not have otherwise because there was no real alternative to the market.

"I think we're long in the cycle," cautioned Novogratz. "This could be the last leg of this giant, decade-long liquidity driven rally. When you really step back, the macro is dangerous and you're going to surf this last leg of the rally."Get this delivered to your inbox, and more info about about our products and services.

Speaking proverbially, of course, the Federal Reserve can keep printing more money to stay abreast of the economic expansion wrought by the stock market in the wake of rate cuts.

OMG WE CANT HAVE THAT HAPPENING AND ALLOW INVESTORS TO ACTUALLY EAT!!!! STOP THEM IMMEDIATELY IF THEY EAT THEY WONT BE STARVING AND WE CANT CONTROL THEM!!! STOP THEM NOW! 🖕🏼🇺🇸🖕🏼 Lets see you work that 140B in an evolved environment suckah!!

That is exactly the plan, though. Trump uses stocks as a proxy for national economic health: he will extend the run by any means possible. But when the next recession hits, interest rates will have nowhere to go but the wrong direction. Then he'll blame Democrats. Or Hillary.

And what does that mean

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Here’s how the stock market tends to perform after a Fed rate cutThe Federal Reserve cut benchmark borrowing costs for the first time in more than a decade on Wednesday. Here’s how the stock market has reacted to cuts in... StockMarket already factored in 0.50% ratecut, so even if FED would cut it by 0.50% it would not resulted in $DJI or $SPX to go up. $DJI or $SPX was going up on promises of ratecuts since December 24, 2018 crash How long would 0.25% cut hold the Market before next Crush?
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Dow, S&P 500 fall after after Fed rate cut, but stock market breadth remains positive.The Dow Jones Industrial Average sank to a triple-digit loss in afternoon trading Wednesday, after the Federal Reserve's decision to cut its target on... Quater point won't do it. .75%(at least) has already been priced in. Keep blowing J.P. StockMarket already factored in 0.50% ratecut, so even if FED would cut it by 0.50% it would not resulted in $DJI or $SPX to go up. $DJI or $SPX was going up on promises of ratecuts since December 24, 2018 crash How long would 0.25% cut hold the Market before next Crush?
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This Fed rate cut could signal the stock market’s peakThis Fed rate cut could signal the stock market’s peak, says investment manager Michael O'Sullivan: Nickola! RIIIIICOOOOLAAAA A Fed rate cut would signal a loving Trump relationship.
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