Experts report an unprecedented rise in rate cut expectations for 2025. The primary cause is considered to be the slowdown in economic growth.
Rise in Rate Cut Expectations
Financial analyst Miles Deutscher noted that the expectations for Fed rate cuts in 2025 have reached record levels. He attributed this to market pullbacks due to concerns about economic growth.
Analysts on the Impact on Markets
Miles Deutscher believes that market pullbacks could reduce the value of risk assets like cryptocurrencies. Neil Sethi noted that the CME's FedWatch tool shows a 77% chance for two rate cuts in 2025.
Inflation and Economic Growth Prospects
Inflation remains at 2.9%, but it increased by 0.5% last month, the highest since August 2023. Experts expect that inflation data could influence future rate decisions.
Expectations for Fed rate cuts in 2025 could significantly impact markets, especially considering rising inflation and slowing economic growth.
