Fed is trying to crash the market?

Hi everyone,

There’s a huge power struggle playing out in the U.S. economy right now, and it could have a major impact on markets, inflation, and your investments.

🚨 The Fed just announced they’re NOT in a hurry to cut interest rates.
🚨 Trump, on the other hand, is demanding immediate cuts.

So, what’s happening, and what does this all mean for you? Let’s break it down.

The Fed’s Stance: “We’re Not in a Hurry”

At the latest FOMC meeting, Fed Chair Jerome Powell made it clear:
✔️ The Fed will only cut interest rates when there’s more progress on inflation.
✔️ The economy is stable enough right now, and the job market remains strong.
✔️ A March rate cut? Highly unlikely. The Fed is in “wait and see” mode.

Translation? They’re not rushing to slash rates anytime soon.

But here’s where it gets interesting…

Trump’s Reaction: “I’ll Fix This Myself”

At Davos, President Trump took a completely different stance:
❌ He blamed the Fed for failing to stop inflation.
📉 He demanded lower interest rates immediately.
💥 He declared that if the Fed won’t act, he will take matters into his own hands.

On Truth Social, Trump doubled down, saying:
🔹 He will increase energy output to bring down costs.
🔹 He will slash regulations to boost business growth.
🔹 He will rebalance international trade to strengthen the U.S. economy.
🔹 He will revive American manufacturing to create jobs.

This sets up a major conflict between the Federal Reserve and the White House.

So, Who’s Really in Control?

Here’s the reality:

• The Fed is independent and makes its own decisions on interest rates.

• Trump can’t force Powell to cut rates, but he can influence policy through fiscal measures (like tax cuts and deregulation).

• If Trump ramps up spending, tariffs and tax cuts, the Fed may actually delay rate cuts due to inflation concerns.

In short, Trump’s actions could keep rates higher for longer—the opposite of what he’s demanding.

What Investors Should Do in This Situation

With so much uncertainty surrounding interest rates, inflation, and government policy, it’s easy to feel overwhelmed.

But here’s the truth: Great businesses thrive no matter the economic conditions.

At Stock Market Genius (SMG), our focus has always been on buying great businesses—companies with:
✅ Strong pricing power – businesses that can raise prices without losing customers.
✅ Consistent cash flow – companies that can generate profits regardless of economic cycles.
✅ Market dominance – businesses with a competitive edge that allows them to outperform.

We don’t waste time trying to predict exactly when interest rates will go down. Instead, we focus on owning businesses that:

• Survive and thrive in any environment

• Outperform competitors in both high and low rate periods

• Continue to grow regardless of government policy changes

Take Arista Network, Nvidia, and ASML as examples—these companies have proven business models that perform whether rates are at 2% or 5%.

That’s why in SMG, we’re doubling down on our strategy:
📈 Finding undervalued gems in AI, energy, and resilient consumer sectors
📊 Positioning for long-term growth, not short-term rate speculation
🤝 Building a portfolio that stands the test of time

And we are happy to sit back and let the businesses make money for us!

Especially during market turbulence like the recent Deepseek crash, where we went heavy on Semiconductors and make a good profit.

In an uncertain world, owning great businesses is the best hedge you can have.

Last 3 days! Lunar New Year Special Promo: $188 Off SMG! 🎉

During the latest livestream, I revealed our Lunar New Year Special Promo:
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Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.