BlockBeats news, November 25, the market expects that next year the Federal Reserve's monetary policy will be significantly different from that of the European Central Bank, as higher economic growth and inflation expectations in the U.S. will exacerbate the differences between the two major economies.
Market pricing shows that by the end of next year, the Federal Reserve's rate cuts will be only half of those of the European Central Bank, which is facing weak economic growth and inflation below target.
Jennifer McKeown, Chief Global Economist at Capital Economics, said: "We expect that due to the rising inflation risks, the Federal Reserve will take a relatively cautious stance, while the European Central Bank will respond strongly to economic weakness, leading to divergences in their easing cycles." (Jin Shi)