Economists at Pantheon, a US-based economic research firm, expect the Fed to cut rates much more aggressively than expected.
The last memo published on the subject projected that the US central bank would cut interest rates by 25 basis points in September, followed by cuts twice as large (50 basis points) in November and December. Economists stressed that these cuts would be much more aggressive than markets and Fed officials had expected.
Pantheon argued that newly released data would signal that the first-quarter acceleration was an anomaly and that disinflationary trends will continue. The note also included expectations for a strong rally in U.S. Treasuries.
How will interest rate cuts affect Bitcoin and other cryptocurrencies?
When interest rates fall, investors often turn to riskier assets in search of higher returns. Bitcoin and other cryptocurrencies are considered risk assets due to their high return potential and volatility. Therefore, the Fed’s rate cut is expected to increase investor interest in virtual currencies.
Release date: June 27, 2024 23:23
Last updated: June 27, 2024 23:24
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