#MarketRebound 🚨BREAKING NEWS – THE FED PLANS TO CUT INTEREST RATES NEXT QUARTER🚨
Global financial markets reacted this morning to analysts' forecasts that the Federal Reserve (Fed) will begin cutting interest rates in Q3 2025 to support the slowing economic recovery.
Many investment funds and economic strategists on Wall Street believe that after a series of interest rate hikes since 2022, the Fed is likely to reverse course and “ease monetary policy” to stimulate credit and spending as U.S. GDP growth has slowed in the past two quarters.
“The risk of recession is increasing, inflation has gradually been controlled 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,” a senior strategist at a major investment bank in New York commented.
In the bond market, the yield on 10-year U.S. Treasury bonds fell by 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 Chair 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 index. Mr. Powell's recent remarks indicate that the Fed is shifting from “quantitative tightening” to “cautious monitoring” before making any moves.