👑👑👑Kingdom citizens and partners, be alert: Wall Street is expressing significant concerns over the Federal Reserve's plans to cut interest rates. 👑👑👑

Major financial institutions like Bank of America show mixed reactions, revealing uncertainty about the Fed's monetary policy direction. Bank of America's management predicts three rate cuts in September, November, and December, while their chief economist, Michael Gapen, initially forecasted just one in December.

However, with recent mild inflation figures, Gapen adjusted his predictions, highlighting internal divergences and broader market uncertainty.

Market expectations have shifted significantly. Derivative markets now indicate a 93.3% chance that the Fed will lower its target range for the federal funds rate to 5-5.25% by September, down from the current 5.25-5.50%. Additionally, there’s a 6.7% chance of a half-point cut, reflecting potential reductions in July and September. This shift follows the latest consumer price index report, which shows a 0.1% monthly decline, bringing annual inflation down to 3%—the lowest in three years.

In response, institutions like Barclays, BNP Paribas, Deutsche Bank, and JPMorgan have revised their forecasts to align with new market expectations. Previously anticipating a single quarter-point reduction by December, they now predict earlier cuts. Fed Chairman Jerome Powell has stated that the central bank is ready to act by September to ensure confidence in inflation returning to its 2% target.

🚩Stay informed and prepared as these developments will significantly shape the economic landscape in the coming months.

SMI🌱