The stock market is exuberant over the Fed’s decision to cut the federal funds rate by 50 basis points, but hold on. The chart below sent to us by the economics team at Chase Investment Counsel examines the past six initial Fed rate cuts and found that in two of the six instances, the stock market FELL over the next year. And in another two instances, the market was positive – but not in double-digit growth territory.

If Washington wants to stimulate economic growth, it should cut TAX rates, not interest rates.  Money creation doesn’t create prosperity.