Probably, we have the last rate cut for the next at least 3 months. Today, they will cut the rate by 0.25. It will be 3.5-3.75%. We have 3 meetings left with Powell (he leaves on May 15). The next meeting is on June 17, with the new chair. Trump said that the new chair must definitely cut the rate immediately. he will likely pressure him to cut by 0.5% right away. Currently, Trump still has a minority in the Fed Board. Inflation target: 2%. Current inflation: 3% (+ no #data for October, November #data out on December 18). The difference between the rate and inflation remains very small: 0.5%-0.75%. Potentially, one more cut of 0.25% is possible in March/April, provided there is no inflation spike. #Bullish news would be any hint of QE and abandoning the 2% inflation target. #crypto
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Probably, we have the last rate cut for the next at least 3 months. Today, they will cut the rate by 0.25. It will be 3.5-3.75%. We have 3 meetings left with Powell (he leaves on May 15). The next meeting is on June 17, with the new chair. Trump said that the new chair must definitely cut the rate immediately. he will likely pressure him to cut by 0.5% right away. Currently, Trump still has a minority in the Fed Board. Inflation target: 2%. Current inflation: 3% (+ no #data for October, November #data out on December 18). The difference between the rate and inflation remains very small: 0.5%-0.75%. Potentially, one more cut of 0.25% is possible in March/April, provided there is no inflation spike. #Bullish news would be any hint of QE and abandoning the 2% inflation target. #crypto