Ed Yardeni: Fed rate cuts are "adding fuel to the fire" for stocks

According to ChainCatcher, senior market observer Ed Yardeni compared the Fed's almost certain rate cut to "add fuel to the fire" in his report to clients. He noted that the S&P 500 hit new all-time highs on Tuesday. Despite signs of slowing in the labor market, overall U.S. economic growth remains solid, so Wednesday's rate cut is not really necessary. Rate cuts are more likely to cause inflation to remain above the Fed’s target while fueling speculative flames in stocks.