If Donald Trump as President cuts rates to the bone despite higher inflation, real yields would drop like a stone, the dollar would plunge and gold would soar.
Big companies would thrive because they have moat to push prices higher, and maintain their margins while global revenues would translate into higher revenues in dollar terms as the dollar crash. Bigger companies able to leverage on AI then to improve productivity with fewer workers. Smaller and medium sized businesses would suffer from eroding margins from higher input costs, higher wages (to compensate for higher inflation). But smaller companies represent where the bulk or 60% of American jobs lie.
The economy may well become a tale of two cities - the bigger and wealthy companies/individuals doing well at the expense of smaller companies and the middle class population. It may be good for the stock market at the upper end but bad for the smaller companies.
