Don't expect Fed to cut by 50 basis points in future, says Steve Grasso

Interest Rate Policy & Market Impact - A rate cut was expected, and the market would have reacted negatively to anything less [2] - The expectation is for a 25 basis point cut at every meeting where a cut is possible [2] - Each 0.25% rate cut saves the government $88 billion annually on debt servicing [3] Market Trends & Sector Performance - Unprofitable companies rallied the most following the "April tariff tantrum" [3] - Mega-cap tech companies are regaining leadership [4] - Russell 2000 companies relying on variable rate debt financing are vulnerable, with 30% relying on month-to-month financing [4] Economic Concerns & Inflation - Inflation remains a concern despite not being at four-decade highs [5][6] - The Fed is weighing price stability versus full employment [7] - Tariffs cause a one-time price shock to goods [7] Fiscal Policy Impact - Tax cuts provide roughly $2,000 per household, while tariffs cost roughly $1,000 per household on average [8] - The market is not fully pricing in the impact of tax policies [9]