The Fed Will Disappoint the Stock Market, Even If It Cuts Rates in September.
1. Market needs a September Fed rate cut to sustain current levels. 2. Expectations for hawkish Fed messaging could trigger a market pullback. 3. Inflation is above Fed's 2% target, complicating rate cuts. 4. Two-year Treasury yield may rise, impacting stock valuations. 5. S&P 500 could fall nearly 5% if rates remain elevated.