🚨 The Fed's rate cut trajectory is affected by Trump's policies, and the stock market may rise at the end of 2024? 📉➡️📈
IG market strategist Yeap Jun Rong pointed out in his latest report that the Fed's future rate cut path may be deeply affected by Trump's policies. Although Trump's remarks on tariffs sound radical at first, the extent of policy implementation is still uncertain, which makes the Fed's rate cut decision more complicated.
🔍 Main points:
Rate cut cycle: Yeap believes that the Fed may start a "shallow" rate cut cycle, which means that the market may not usher in a large-scale rate cut immediately, but it also brings short-term support to the stock market. Stock market expectations: With the end of the Fed meeting and the Bank of Japan keeping interest rates unchanged as expected, the US stock market may gradually rise in the last few weeks of 2024. But he also warned that without further catalysts, it would be difficult for the stock market to break new record highs.
📊 Impact on the crypto market:
Interest rates and market sentiment: Rate cuts tend to help stimulate investment in risky assets, including cryptocurrencies. But the Fed's "mild rate cuts" may not quickly trigger large-scale capital inflows into the crypto market. Uncertainty of Trump’s policies: Trump’s policies remain unclear, which may cause the market to remain on the sidelines in the coming months, especially for the demand for safe-haven assets such as stablecoins and Bitcoin.
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