Jerome Powell appears set to sidestep politics even as he oversees a likely central bank rate cut

With the Fed set to cut interest rates as part of its strategy to stimulate the economy, banks and consumer-facing sectors are likely to benefit. Lower interest rates generally boost spending and borrowing, which can lead to higher earnings for financial institutions.

Interest rate cuts can also provide a supportive environment for growth stocks as their future earnings become more attractive when discounted at lower rates. Sectors such as technology could see renewed interest from investors looking for growth in a lower-rate environment.