The markets are pricing in 3-4 rate cuts by the end of 2020. What is Powell's next move?

The Market for awhile has been betting on a Fed rate cut or cuts and hoping that it is not because the economy needs it. So, at first glance it looks like Powell has a dilemma because the June Jobs report was much better than many of us had been expecting. The signaling has all been about inflation not meeting targets, heightened risks from oversea's slowing economic growth and trade uncertainty. Which still has the opportunity to hit the real economy here in the U.S. and we see the G-20 as being neutral. Slightly positive in that new tariff's were not put on , but the trade war is alive and well. And that uncertainty is alive and the wild-card of additional tariff's remain.So in our view .25% percent is on the table and the Fed does not cut once. If they 1/4 percent in July they will also cut another 1/4 percent before the end of the year. And has the market already taken this into account and that is why we are where we are. So the market has already priced in all the great news and what it has not priced in yet is earnings rolling over. So we just had an earnings stabilization of the earnings decline in the April-May time frame. We believe that earnings will erode even further in the 3rd quarter.We also see earnings coming down for the remainder of 2019 and for 2020, while the market is still pricing in 3-4 rate cuts. So the good news is already in the market and it just seems that this risk is to the downside.However we have a sea of liquidity coming from central banks globally and that will sustain the markets for awhile.So there is to be a lot of global liquidity here and asset prices will move higher that is a concern. The real-risk here is that we do not get into a bubble situation like 1998. The real question is can lower rates and lower yields actual produce growth in the real economy and a higher multiple for stocks? As Japan and Germany have lowered so much that they cannot grow their economies. You have the lowest yields in the global economy ever and you cannot grow the economy.The new thinking from the Fed is that pre-emptive is better than waiting for the economy to slow. The thinking out there is that doing more earlier is closer to zero is a better way to approach it. Powell echoed that same sentiment at his last press conference. So how do we react to all of this right now if the market has priced in all the great stuff where does that leave us now? Well it looks like to us that you are starting to see asset price inflation here and I think you cannot escape the sea of liquidity and the 13 trillion dollars of negative yielding debt globally. Our yields are going to stay low and people are going to start piling into equities, so markets moving higher but ultimately the fundamentals do matter and will have to follow.Thank You,John C.Verducci 111