Barclays forecasts that the US Federal Reserve will cut interest rates five times over the next two years, reflecting significant shifts in economic policy.
Interest Rate Projections
Barclays expects the Federal Reserve to implement five rate cuts, influenced by Powell's remarks on labor market stress. Jonathan Millar stated, 'We expect the US Federal Reserve to cut interest rates three times in 2025 and twice in 2026, each by 25 basis points, following recent signals from Jerome Powell regarding labor market stress.'
Impact on Crypto Markets
The Barclays economics team believes these adjustments will influence institutional trading strategies and economic forecasts. The forecast may trigger a positive response in cryptocurrency markets, including BTC and ETH.
Potential Broader Economic Shifts
Barclays' forecast may alter investment strategies across financial markets, suggesting greater crypto adoption and financial shifts as interest rates adjust.
Barclays' predictions regarding Federal Reserve rate cuts may play a key role in market dynamics, including those associated with cryptocurrency assets.
