Hello everyone! Today, we are going to talk about a seemingly complex topic, but in fact it is closely related to each of us - the policy shift of the U.S. Federal Reserve (Fed).
📅 Going back to March 2022, we witnessed the Fed embarking on an unprecedented aggressive monetary tightening cycle. But now, things seem to be changing dramatically. The latest news shows that the Fed has begun to suspend interest rate increases and maintains the federal base interest rate between 5.25% and 5.50%. What does this shift mean?
First, it means that consumer confidence in our economy is beginning to shine again, and the pace of future interest rate cuts is becoming clearer. According to Bloomberg, Wall Street economists’ bold forecasts for the U.S. economy show that although not optimistic, the Fed’s positive signals will digest the previous negative impact in the short term.
🌍 Faced with challenges such as the Sino-US trade war and high deficits, economists believe that compared with the 2020 epidemic and the global financial turmoil at the beginning of the century, this economic downturn will be moderated. Goldman Sachs is even more radical, arguing that the main risk we face now is a reacceleration of economic activity, not a recession. $BTC
🎯 In the FOMC decision in December, the Fed took a critical step by admitting the mistakes they made and suspending the implementation of interest rate increases. This indicates that the global situation may usher in a clear trend of interest rate cuts in 2024. As the policies of the world's leading economies return to stability, we have reason to believe that the global economy will maintain stable growth in the next few years.
So, friends, despite the macroeconomic challenges, we don’t need to worry too much. As Fed Chairman Powell said, interest rates will be cut three times next year, each time by 25 basis points. This move is expected to arouse widespread optimism in the market. $SOL
Let us look forward to a new starting point for the global economy and welcome a more stable development future!
Several aspects are already so optimistic, so does it mean that Bitcoin will not rise high next year?
If you think what I said is right, please follow me and let us predict the bull market next year.
