According to the stock market, very important! When interest rates come down, investors flee from bonds to the equity markets, pushing prices up. And today, when Jerome Powell spoke at Jackson Hole, the markets listened and responded accordingly. He signaled that the Federal Reserve may soon cut rates, and the reaction was immediate—the stock market soared, with the S&P 500 jumping more than 1.5% while bond yields and the dollar softened. Futures markets now show about a 91% chance of a rate cut as early as September.
