Fed Rate Cuts: The Signal Everyone’s Watching 👀

The Fed doesn’t just move rates — it moves everything. One cut, one sentence, even one subtle shift in tone can flip stocks, crypto, FX, and commodities in minutes. Here’s how I’m reading the setup right now.

Where the Fed Stands
December 2025 delivered a 25 bps cut, pushing rates to 3.50–3.75%. That’s three cuts in one year. Translation: growth is cooling, inflation isn’t the main threat anymore.

Why More Cuts Are Still on the Table
• Economic momentum is fading
• Labor data is starting to crack
• Global risks aren’t going away
• Markets stay jumpy — and the Fed hates instability

This is how the door quietly stays open.

What Markets Are Pricing (Not What the Fed Says)
• Fed dot plot: 1 cut in 2026
• Traders: closer to 2 cuts (~50–58 bps)
• Early 2026 odds are low, but expectations build fast as data rolls in

Remember: markets move on expectations, not press conferences.

How Assets Usually React
• Stocks: Relief rallies love cheap money
• Crypto: BTC leads, ETH follows, alts chase
• USD: Pressure builds as yields slip
• Bonds: Yields front-run the Fed
• Gold & commodities: Liquidity = fuel

Risk-on doesn’t ask twice.

#FedRateCutPrediction