ratecuts

1⃣ Official Confirmation:
Jerome Powell has just confirmed what the market’s been anticipating—**rate cuts** are on the way, with the announcement expected at the September Fed meeting! 📉

2⃣ **Why the Cut?**
Powell pointed to a **decreased risk** of runaway inflation, expressing confidence that the **CPI** is edging toward the Fed's 2% target. But is the optimism justified? 🤔

3⃣ **Inflation Reality Check:**
The latest CPI reading is **2.9%**—still well above the Fed's target. **Inflationary pressures** remain stubborn, leaving questions about just how much rates will be slashed.

4⃣ **Budget Deficit Warning:**
With a **$1.8 trillion** annual budget deficit looming, the inflation outlook is far from clear. The deficit adds fuel to the inflationary fire, complicating the Fed's balancing act. 🔥

5⃣ **Market Impact:**
As rate cuts approach in this inflationary environment, **Bitcoin** and other assets with **limited supply** could surge, while those holding wealth in dollars may face a hit to their purchasing power. The stakes are sky-high! 📈💰

**Powell’s words have set the stage for a potentially explosive market reaction—are you ready?**

#FedRateDecisions #ratecuts #inflation #Bitcoin❗ #Powell

#ratecuts
The financial markets are buzzing with renewed excitement about a potential shift in Federal Reserve policy. According to CME's FedWatch tool data from November 22nd the probability of a 25 basis point interest rate cut in December has dramatically increased soaring to 71.3%. This significant jump reignites rate cut bets that had cooled considerably just weeks prior.
This pivot in market sentiment follows a series of seemingly dovish remarks from several prominent Fed officials earlier today. These statements suggest a possible weakening resolve to maintain high interest rates pushing the likelihood of an early reduction higher than expected. Earlier this month the prospect of a December cut had briefly fallen below a 30% threshold.
The data further reveals that the probability of the Fed holding rates steady next month is now quite low at 8.2%. Looking ahead to the January 28th 2026 FOMC meeting the likelihood of rates remaining unchanged until then is 19.2%. Importantly the cumulative probabilities for January show a 57.1% chance of a 25 basis point cut and a substantial 23.7% chance of a deeper 50 basis point reduction.
With the next two key FOMC meetings scheduled for December 10th and January 28th 2026 market participants will be closely scrutinizing every piece of economic data and official comment. The sharp rise in cut expectations signals a significant confidence shift anticipating a major policy move from the Federal Reserve very soon. This renewed optimism suggests investors believe the tightening cycle may be definitively over.