Fed should not be involved in the interest rate game: Steve Forbes | Fox Business Video

If the Fed backs down from aggressively managing interest rates, bond yields could stabilize or potentially decrease, making bond ETFs like TLT (iShares 20+ Year Treasury Bond ETF) more attractive. In such a scenario, investors might see a positive impact on the price of TLT as demand for long-term bonds increases.

On the stock market side, if tax cuts are favored over interest rate cuts, sectors that benefit from lower taxes, such as consumer discretionary and financials, might experience positive momentum. Conversely, if interest rates remain high or are expected to rise, it could pressure growth and tech stocks negatively.

Overall, the sentiment towards reducing Fed involvement could create a more stable investment environment, favoring economic sectors focused on growth. However, vigilance is necessary as the impact of further Fed actions could swing market sentiment.