CandleFocus

Fed Rate Cut Guidance Will Exceed Wall Street’s Bearish Outlook

The Federal Reserve is expected to update its interest rate policy this week, with a consensus expectation of a 25 basis point cut. However, there is uncertainty about the outlook for interest rates next year, with some speculators betting on a smaller rate cut than previously expected. The author agrees with the assessment that the Fed is likely to reduce interest-rate expectations for next year, citing improving employment and inflation numbers as evidence that the economy is returning to normal. This is important for risk-asset investors as it means the cost of borrowing money will continue to drop, leading to more investment in assets like cryptocurrencies. The author expects the Fed to guide for 75 basis points worth of rate cuts in 2025, compared to Wall Street's outlook of just 50.

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