The presence of political pressures pushing for economic stimulus does not negate the very real factors necessitating a rate cut: economic turbulence (domestic and global) and trade wars.

Notably, as trade, manufacturing, and business investment data have weakened, job growth has slowed. The timing could not be worse, as those that were largely forgotten by the 11 year economic recovery are only just now starting to gain traction. The ongoing trade war, which shows no sign of slowing, will only further handicap job growth. Meanwhile, central banks around the world are cutting their own rates, in the face of greater global stress.

While the above risks do not necessarily indicate a coming recession, cutting rates now will, in Chairman Powell's words, provide a needed "insurance" policy. As Alan Greenspan - who cut rates in July 1995 when the S&P 500 was at a record high and up 20% for the year - recently said, it pays to proactively fend off potential negative economic effects. Moreover, inflation continues to be too low, running 40-50 basis point below the 2% inflation target. This gap not only indicates ample room for movement, but could threaten the economic expansion if it is allowed to persist.