FOMC Next Meeting: Are We Heading for a Rate Cut?
Hey everyone,
The upcoming FOMC meeting is scheduled for March 18-19, 2025. Here's a quick recap of recent actions:
In the last six meetings, the Fed increased rates 4 times and held rates 2 times (most recently on January 29-30, 2025 and August 2024).
The Fed’s annual inflation target is 2%, but current inflation is running closer to 3–3.4%.
Based on these trends, I’m expecting a potential rate cut at the March meeting. Here’s what might happen if the Fed decreases rates:
Increased Liquidity: Lower rates could make borrowing cheaper, boosting market liquidity.
Bullish Market Sentiment: Equities might rally as lower interest rates reduce the cost of capital.
Weaker USD: A cut could lead to a softer dollar, which might drive gains in commodities and crypto markets.
Mixed Signals: On the flip side, a rate cut could be seen as a signal that the Fed is concerned about economic slowdown, so caution is still needed.
What’s your take? Let’s discuss how this potential pivot could shape the market!
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