ilmscore | New All Time Highs Coming SOON?? Fed Rate Cuts Explained!

New All Time Highs Coming SOON?? Fed Rate Cuts Explained!

Published: 2024-09-25
Status: Analyzed

Predictions from this Video

Total: 9
Correct: 0
Incorrect: 0
Pending: 9
Prediction
Topic
Status
The Federal Reserve expects interest rates to fall to around 3% in the coming years and remain at that level long-term, suggesting a higher interest rate environment.
"most fed officials see interest rates falling down to around 3% in the coming years and staying at those levels in the long term"
Federal Reserve Interest Rates
Pending
The Federal Reserve plans to significantly cut interest rates if inflation continues to fall or unemployment continues to rise.
"the FED will continue cutting interest rates bigly if either of these two happens"
Federal Reserve Interest Rates
Pending
Based on projections, the Federal Reserve is expected to cut interest rates by 25 basis points at each of the two remaining meetings of the year, bringing rates to around 4.5% by year-end.
"since fed members expect interest rates to be at around 4.5% at the end of the year and given that there are two more fed meetings left between now and then this implies a 25 basis point cut at each one"
Federal Reserve Interest Rates
Pending
Unemployment has risen due to increased labor supply from illegal immigration, but this trend may reverse as illegal immigration has reportedly declined, potentially leading to falling unemployment in the near future.
"unemployment has started Rising what Jerome failed to mention was that the influx of illegal immigration has reportedly declined in recent months this means that unemployment could actually start falling again in the not too distant future"
Unemployment Rate
Pending
Continued government spending is expected to make it difficult for the US economy to enter a recession.
"so long as the US government continues spending then it will be very hard for the US economy to fall into recession"
US Economy
Pending
In the short term, Federal Reserve rate cuts are predicted to increase market performance, especially for small-cap stocks due to their sensitivity to interest rates.
"in the short term rate cuts are likely to boost the markets particularly small cap stocks as they the most sensitive to interest rates"
Stock Market
Pending
Cryptocurrencies, particularly altcoins, are expected to rally and continue their upward trend as long as the Federal Reserve continues to cut interest rates, due to their correlation with small-cap stocks.
"The same is true for cryptocurrencies particularly altcoins, which seem to be highly correlated to small cap stocks this is why crypto has been rallying hard with altcoins leading the way and why it will continue so long as the FED keeps cutting rates"
Cryptocurrency Market
Pending
In the long term, the Federal Reserve's rate cuts pose a risk of re-igniting inflation, which could lead to higher interest rates.
"in the longer term the fed's rate Cuts risk reigniting inflation which in turn risks sending interest rates higher"
Long-term Interest Rates
Pending
The Federal Reserve's continued selling of bonds from its balance sheet may be creating conditions for bond market volatility, which the Trump team reportedly fears.
"by continuing to sell these bonds the FED is knowingly or unknowingly setting the stage for the exact kind of bond market volatility the Trump team seems to be terrified of"
Bond Market Volatility
Pending