Name: It’s Official: The Fed Will Reset The Stock Market
Uploaded: 2026-03-12T18:00:13.000Z
Duration: 9 min 43 s
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If you have been waiting for lower interest rates, then I have really good news for you, because lower rates are coming.

Take a look at what the chairman of the Fed said.

What we're waiting for to reduce rates is, is to understand what will happen with, with really the tariff inflation.

And there's a lot of uncertainty about that.

Every forecaster you can name, who you know, who is a professional, you know, forecaster with, with adequate resources and forecasts for a living, is forecasting, you know, pretty significant.

Everyone that I know is forecasting a meaningful increase in inflation in coming months from tariffs because someone has to pay for the tariffs.

And it will be someone in that chain that I mentioned.

When Donald Trump has introduced the tariffs, it was clear that somebody sooner or later has to pay these tariffs, since it's an additional tax.

And the Federal Reserve has actually been on a path to lower down interest rates.

If you go back to 2024, when interest rates have been between 5.25% to 5.5% during the entire 2024, the Fed has actually substantially lowered interest rates to 4.3%.

However, this is when Donald Trump introduces the tariffs.

And this is when the Fed says to the public, listen, we don't know how much of an impact these tariffs are going to have on interest rates.

And the main job of the Federal Reserve is to have stakeholders stable prices and maximum employment.

And you cannot possibly have maximum employment if prices are not under control because the dollar is the global reserve currency.

If prices are substantially rising really fast, then employers cannot possibly manage their businesses because they don't know how to price their goods and services.

Which is why, even though that maximum employment is important, it is impossible to achieve that goal if you don't have stable prices.

And that's why interest rates throughout 2025, or I would say until the end of 2025, has been very stable.

And this is the point where the US Economy illustrated that it is resilient.

That's when the Fed, after Donald Trump has pressured the chairman of the Fed, he has lowered interest rates since then from 4.33% to as low as 3.6%.

And in the last meeting of the Fed, the chairman of the Fed made it clear that we don't know for a fact how much more prices are going to rise.

But now we have the decision of the Supreme Court that says that these tariffs are unconstitutional.

So the chairman of the Fed has no excuse right now but to lower down interest rates.

Because if you look at the Inflation data, inflation actually isn't getting out of control substantially.

The year was ended with 2.7% inflation rate and in January of 2026 inflation was as low as 2.4%.

And now because most of these tariffs are going to be canceled, you can expect that prices are not going to substantially rise.

And there is a real possibility that the United States is going to end the year with inflation that is below 2.5%.

And because if you look at the unemployment rate that has been slowly ris and the job of the Fed is to prevent any kind of recession, there is literally every reason at the disposal of the Fed right now to lower down interest rates.

And the Fed has also made it clear that we are just waiting for clarification because the worst thing that you can possibly do is to lower down interest rates sooner than expected.

When people realize that prices will continue rising, they will start overspending.

That overspending ends up into a self fulfilling prophecy where prices continuously try to rise.

And that's why one of the most important jobs of the Fed is to manage the expectations of the consumers and manage the expectations of investors.

Because the expectations of investors decide what are going to be the interest rates that the government of the United States is going to pay on the national debt.

Imagine for a moment let's say the 10 trillion dollar debt that is being held by foreign countries.

If these foreign countries suddenly believe that inflation in the US will substantially rise more than 3% or 4%, they will start demanding higher yields.

And that is the job of the Fed to manage those expectations through higher interest rates.

So it is fine to have higher interest rates for some time unless if we are going to get at the end of the day, lower inflation expectations.

So the Fed is going to have a couple of meetings.

The next one is coming in March and then April.

So probably either in March or April, I would say most likely in March we are going to have lower interest rates.

And some people will make the argument that, well, instead of these tariffs, Donald Trump has imposed the 15% global tariff.

Now I don't think anybody is going to take this tariff seriously because these tariffs have expirational date.

And I think there are going to be a lot of exemptions on these tariffs, which is why prices, prices most likely are not going to rise.

And businesses right now have a clear strategy on how to act.

They know which tariffs are going to stay and which tariffs are going to be removed.

The real question is will prices go down because Donald Trump has removed these tariffs.

That is not happening because most of these businesses have incurred a lot of losses over the last year because these tariffs actually disrupted supply chains.

And when you bring goods from outside and you have this long effective supply chain, the moment be actually disrupted, prices are going to rise.

So many of these businesses, even though that they have raised their prices, have actually incurred a lot of losses, which is why they're not going to lower down their prices just because Donald Trump has actually removed these tariffs because they have to compensate for all the losses that they have made over the last year.

Now secondly, when you raise your prices, you're not going to bring these prices down.

But here is a more important question is how will lower interest rates are going to impact the stock market?

If you look at all the stocks in the stock market, you can categorize them into two major categories.

On one side you have value stocks, on the other side you have growth stocks.

Value stocks are the businesses that have already built their entire business.

It is an oil company that extracts oil and gas and they have spent the last 50 years building infrastructure all across the United States.

So if you pull out their balance sheet, you will see that these businesses are making a lot of money.

But there are on the other side, companies that are actually working really hard.

They're investing a lot of money, but they're not making a lot of profits today.

They will make a lot of profits in the future.

OpenAI is spending hundreds of billions of dollars because they're hoping that AI is going to be profitable and these profits are going to come sometime in the now.

The question you should be asking yourself is that how will lower interest rates are going to impact the future cash flow?

That money that this business is going to make in the future, what is going to be it is value today because remember, a dollar today worth more than a dollar tomorrow.

So if I would ask you, let's say, would you actually take a million dollars today or a million dollars a year from now?

Of course, a million dollars today worth a lot more than a million dollars a year from now.

Because that million from now, just because there is inflation is automatically going to worth a lot less now.

Secondly, that million dollars today could be easily invested in the US Treasuries and will generate up to 4% in interest rate.

So automatically you can make the assumption that money today worth a lot more than money tomorrow.

When the Federal Reserve lowers down interest rates, the discounted rate and how you discount the future cash flow into present value is going to go down.

So that future cash flow instantly becomes more valuable.

Let's say There is an AI company that is called OpenAI and it's going to make $1 billion five years from now.

When interest rates are 4%, we discount that $1 billion to today's dollars and there is going to be a value.

Now the Federal Reserve lowers down interest rates to 3% and we discount now that billion dollars to today's dollars.

Suddenly that billion dollars worth a lot more than when interest rates are 4%.

That is why the valuation of OpenAI instantly goes up.

And that's why the moment the Federal Reserve lowers down interest rates, here's what happens to stocks.

Growth stocks that are supposed to make a lot of money in the future.

While the value stocks who have already built their businesses and are making a lot of money, valuation slightly goes down.

So when you know the dynamics of the market now, you know which stocks you should be focusing on and how lower interest rates that are coming in next couple of months are going to impact the markets.

And if you want a step by step strategy on how you can massively profit from the stock market when the Federal Reserve is going to lower down interest rates, then check out the first link in the description of this video.