Analysis: Interest rate cuts will drive a historic widening of the wealth gap, with asset owners prevailing over Inflation.

BlockBeats news, on August 24, The Kobeissi Letter released the latest market analysis indicating that the pace of interest rate cuts is not expected to be as aggressive as Trump hopes, at 300 basis points. The last time the Fed cut rates due to rising Inflation was in the 1970s, resulting in the historic widening of the wealth gap. In 1990, the wealth gap between the richest 1% and the poorest 50% was $30 trillion, now it is $40 trillion. Currently, the wealth held by the richest 0.1% in the U.S. is 5.5 times that of the poorest 50%. In fact, the Fed has indeed "fallen behind" in the current global rate-cutting cycle. Central banks around the world cut rates 15 times in May alone, the fastest monthly rate cuts this year, and one of the largest rate-cutting waves of this century, confidently predicting that the first Fed rate cut in 2025 will come in a month. Moreover, Fed Chairman Powell has 8 months left in his term, and President Trump has explicitly stated that the new Fed chairman he selects must cut rates and will "soon" announce the new Fed chairman's candidate. The year 2026 will be a historic year for the market. In fact, this trend is not new; it has just been accelerated by the pandemic, with asset holders overcoming Inflation. The richest 1% of U.S. households own 51% of the stocks, while the richest 10% own 87% of the stocks. Before the wealth gap widens further, market participants should increase their asset holdings.