The Men Who Broke the Pound May Now Break Interest Rates Lower

The article argues that Treasury Secretary Scott Bessent and incoming Fed Chair Kevin Warsh — both linked to the traders behind 1992’s "Black Wednesday" — are likely to push a faster-than-expected pivot toward lower U.S. interest rates. The author expects their shared playbook to accelerate rate cuts (Bessent has publicly called for 150 bps of reductions), which would favor smaller, domestically focused growth and small-cap stocks. History shows sustained cutting cycles boost small-cap and cyclical winners, and the author’s Stock Grader has already flagged 53 small-cap names as early beneficiaries. Market implication: a policy-driven rotation away from mega-cap leadership into smaller, leverage- and rate-sensitive equities if the Fed moves sooner or more aggressively than markets currently price.