A major prediction has been making waves these days — Citibank states that the Federal Reserve may start cutting interest rates as early as June, and could lower rates up to five times this year!
The key point is that they are not saying this because inflation is cooling, but because they believe the U.S. economy and employment cannot hold up much longer. The Federal Reserve will be more focused on whether the 'economy can withstand it' in the coming period.
They said directly:
We expect that the data before June will make the Federal Reserve increasingly dovish.
What does it mean? Simply put, it means to inject liquidity, to lower interest rates, to save the economy!
Even bolder, Citibank predicts that by the end of 2025, the Federal Reserve's interest rate could drop from the current 4.25%-4.5% all the way down to 3%-3.25%.
What impact does this have on us?
If it really drops like this, the stock market, cryptocurrency market, and gold... all could potentially see a wave of opportunities!
But let's not forget, how the Federal Reserve proceeds will depend on the economic data in the coming months.
For now, we can only say: the winds have changed, everyone is focusing on the data, and it's important to position oneself in advance!