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Showing posts with the label interest rate

Speculations abound as touching Fed Rate cuts and interest rates

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Historic Stock Trends Melker highlighted that market corrections historically follow FED pivots and rate cuts. Historically, Central banks, including the Federal Reserve, often adjust their monetary policies in response to changing economic conditions.  advertisement Rate cuts are typically implemented when the economy is facing headwinds, aiming to stimulate borrowing, spending, and investment. However, as the tweet suggests, these rate cuts might not have an immediate positive impact on the stock market. Instead, they could signal underlying concerns about the economy that eventually lead to a correction or downturn in the market. The Stock Market historically corrects AFTER the Fed pivot. Rate cuts generally precede major dips. Recommended Articles Crypto Presale Projects For 2023 To Invest; Updated List Must Read ...

Potential Fed pivot has crypto and macro analysts ultra-bullish on Bitcoin’s price prospects

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Fidelity’s head of macro suggests that the end of the Fed’s quantitative tightening policy could be bullish for Bitcoin and gold. The United States Federal Reserve began its most aggressive quantitative tightening efforts in March 2022, raising benchmark Interest Rates in the year since from near-zero to 4.75% to 5% annually. While the central bank has successfully brought down inflation to some degree, the increasing Interest Rates are starting to cause cracks in the global banking industry. The market expects the Fed to end quantitative tightening and provide favorable liquidity conditions to avoid a global financial crisis as the banks begin to fail. The shift in the Fed’s policy should have significant implications for financial assets. Jurrien Timmer, the director of global macro at Fidelity, discussed the likely impact of the Fed’s dovish pivot on stocks, gold and Bitcoin. Market expects the Fed to put an end to interest rate hikes The Fed is largely expected to either maintain ...