Lowering interest rates won't solve problems in the labor market, says Ed Yardeni

Market Outlook - The current market sentiment is characterized by complacency, but a meltup is considered more likely than a drop, with a bullish scenario having a 50-55% probability [2][4] - The S&P 500 is projected to reach 7,000 by the end of the year and potentially 7,700 by the end of next year, with a meltup scenario suggesting a rise above 7,000 [5][4] Economic Indicators - Recent inflation numbers have been cooler than expected, contributing to a positive market outlook [1] - The economy has shown resilience, with real GDP growth exceeding 3% in the last two quarters, indicating strong economic performance despite labor market issues [9][10] Interest Rates and Employment - Anticipated rate cuts by the Federal Reserve are viewed as unnecessary, as they may not significantly stimulate demand or job creation [6][7] - Labor market challenges are attributed to supply-side issues, including immigration and the retirement of baby boomers, rather than a lack of demand [10][9] Trade and Tariffs - The administration is reportedly rushing to finalize trade deals before potential Supreme Court rulings on tariffs, which could impact market stability [15][18] - A significant amount of revenue from tariffs, estimated between $350 billion to $450 billion, could lead to complications in the bond market if companies seek refunds [19]