BoA’s Mark Cabana Reveals What To Expect Ahead FOMC Meeting
The post BoA’s Mark Cabana Reveals What To Expect Ahead FOMC Meeting appeared on BitcoinEthereumNews.com.
The Federal Reserve is widely expected to announce a quarter-point interest rate cut this week following its two-day policy meeting. As central banks gear up for monetary policy decisions, market participants are keen to understand the rationale behind the anticipated cut and its future trajectory. Mark Cabana, Head of U.S. Rate Strategy at Bank of America Securities, provided insights into what to expect from the upcoming FOMC decision. Fed Rate Cut Forecasted by BoA’s Mark Cabana Ahead of FOMC According to Cabana, the Fed Rate Cut of 25 basis points comes as the Federal Reserve signals a shift toward a more gradual approach to rate adjustments. While inflation remains stickier than expected, the labor market continues to exhibit signs of moderation. Cabana noted that the Fed’s decision reflects concerns over maintaining restrictive monetary policy for too long. The FOMC decision aligns with prior Fed signals to the market, ensuring stability and avoiding unnecessary disruption. Cabana emphasized that failing to follow through on prior guidance could upset financial markets, an outcome the Fed aims to avoid. Despite strong labor data and cooling employment growth, a cautious stance is justified. The Head of U.S. Rate Strategy at Bank of America Securities emphasized, “They likely worry that if they don’t cut, they risk upsetting markets, so they’re going to go ahead with this cut and then signal that they’re likely moving to a bit of a more gradual upsetting markets.” It is important to note that Fed rate cuts boost the crypto market and altcoins. BTC rallied past $100K as predicted due to the anticipated December cuts, which increased liquidity and investor risk appetite. Analysts highlight that a 25 basis point reduction could fuel further price momentum, with altcoins like Ethereum and XRP also drawing capital flows. Sticky Inflation and Cooling Labor Market…
Filed under: News - @ December 17, 2024 11:22 pm