🚨 Fed Shifts Focus from Inflation to Unemployment🚨

Federal Reserve Chair Jerome Powell has acknowledged that the Fed's previous stance on inflation might have been misguided, and the current priority is addressing unemployment. With 461,000 jobs lost this year, the labor market is weaker than expected.

Rate Cut Expectations💰

A September rate cut is highly likely, with markets pricing in an 87.2% probability of a 25 basis point reduction. This move aims to stimulate economic growth and support the labor market.

Market Implications📈

Historically, every easing cycle has led to a significant increase in the S&P 500, averaging +14% in 12 months. Investors are positioning themselves for potential gains, but workers might not benefit equally due to stagnant wage growth.

Key Takeaways 📝

- Rate Cut: Expected to boost economic activity and support the labor market

- Market Performance: S&P 500 tends to rise during easing cycles

- Wage Growth: Workers' wages not keeping pace with price increases

- Housing Market: Falling rates stimulate demand, but old cheap mortgages limit supply

lnvestor Sentiment💼

Major banks like Barclays and JPMorgan expect rate cuts in September, with Barclays predicting three 25-basis-point reductions in 2025. Investors are preparing for potential shifts in asset classes, including bonds and equities .#Powell #Fed #Inflation #altcoins #newscrypto $BTC $ETH $TWT