🚨BREAKING NEWS – THE FED PLANS TO CUT INTEREST RATES IN THE COMING QUARTER🚨
The global financial markets reacted this morning to analysts' forecasts that the U.S. Federal Reserve (Fed) will begin cutting interest rates in Q3 2025, in order to support the slowing economic recovery.
Many investment funds and economic strategists on Wall Street believe that after a series of interest rate hikes from 2022 to now, the Fed is likely to reverse course and “ease monetary policy” to stimulate credit and spending amid a slowdown in U.S. GDP growth over the past two quarters.
“The risk of recession is increasing, inflation has gradually been brought under control to the target zone of 2%, and the labor market is showing signs of cooling. This paves the way for the Fed to consider cutting interest rates at the end of July or early August,” said a senior strategist at a major investment bank in New York.
In the bond market, the yield on the U.S. 10-year government bond fell about 10 basis points to 3.75%, while the U.S. dollar index stood near its lowest level in two weeks against a basket of major currencies, reflecting many investors' expectations that the cost of capital will be cheaper in the second half of this year.
In the upcoming June monetary policy meeting, Fed Chairman Jerome Powell is expected to thoroughly discuss the latest economic data, including the CPI and PCE inflation reports, as well as the non-farm payroll employment index. Mr. Powell's recent remarks indicate that the Fed is shifting from “quantitative tightening” to “cautious monitoring” before making any decisions.
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