🚨BREAKING NEWS – THE FED IS EXPECTED TO CUT INTEREST RATES NEXT QUARTER🚨
Global financial markets reacted this morning to analysts' forecasts that the U.S. Federal Reserve (Fed) will begin cutting interest rates in the third quarter of 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 as U.S. GDP growth has slowed in the past two quarters.
"The risk of recession is increasingly rising, inflation has gradually been brought under control to the target range 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 the 10-year U.S. Treasury bonds fell by about 10 basis points to 3.75%, while the dollar index hovered near a two-week low against a basket of major currencies, reflecting many investors' expectations that capital costs will be lower 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 payrolls. Mr. Powell's recent remarks suggest that the Fed is shifting from 'quantitative tightening' to 'cautious monitoring' before making any decisions.
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