It's interesting that market participants anticipate that the Fed will cut the interest rate Jul 2024.

in hive-103599 •  last year  (edited)

1000005952.jpg

Source: CME FedWatch Tool

I wondered how long the federal funds rate pause will be. Contrary to Powell's remarks, market participants anticipate that the interest rate will be paused next month.

Furthermore, they predict that it will be cut within 10 months. Well, the average period of the interest rate pause is around 5 months.

Before the QT(Quantitative Teasing), Powell's statements were unreliable. However, in the recent 2 years, Powell's statements have been reliable and consistent. So, I think that's the reason why they anticipate that.

1000005954.jpg

Source: CME FedWatch Tool

I won't be surprised even if the cut will start the early next year, which means next recession is coming. But, I hope that Goldilocks is coming. If so, there wouldn't be a deep dip for crypto and stock markets.

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