CoinVoice has recently learned that the Federal Reserve has raised the target for the federal funds rate by 0.5 percentage points at the end of 2025. Citigroup economist Andrew Hollenhorst believes that the Federal Reserve may find itself in a state of paralysis. With the core PCE rising 0.1% month-on-month in November, the increase in prices is slowing down, and the ultimate rate cut by the Federal Reserve may exceed current expectations.

"In our base case, a softening labor market will lead the Federal Reserve to cut rates at every meeting going forward." This view contrasts with market expectations that the Federal Reserve will pause rate cuts in January. "But even if we are wrong, a stagnant unemployment rate and slowing inflation are sufficient reasons to cut rates at every meeting at least beyond January." [Original link]