31845073391🚨HOT NEWS – THE FED PLANS TO CUT INTEREST RATES IN THE NEXT QUARTER🚨
Global financial markets reacted this morning to analysts' forecasts that the U.S. Federal Reserve (Fed) will begin to cut interest rates in Q3/2025, 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 "loosen monetary policy" to stimulate credit and spending as U.S. GDP growth has slowed in the last two quarters.
"The risk of recession is increasing, inflation has gradually been controlled around the target zone of 2%, and the labor market is showing signs of cooling. This paves the way for the Fed to consider lowering 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. government bonds fell by about 10 basis points to 3.75%, while the USD 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 employment index. Recent comments from Mr. Powell indicate that the Fed is shifting from "quantitative tightening" to "cautious monitoring" before making any decisions.