CICC: Fed go still dey cautious, no major rate cut dem dey expect
CICC research report dey warn say Federal Reserve go still dey cautious and e no too likely to make big rate cuts anytime soon. Even though market dey expect rate cuts more and political people like President Trump and Treasury Secretary Mnuchin dey put pressure, CICC talk say current US economy no fit support any heavy Fed rate cuts. The report highlight risk of stagflation, wey mean employment dey slow down and inflation still stiff, and e recommend say monetary policy suppose focus on stabilizing inflation expectations and no dey follow short-term growth targets or political pressure. This stance dey cause uncertainty about how Fed go take do money policy and e mean say traders suppose rethink how dem dey place risk assets based on the fact say interest rates fit remain high for long.
Bearish
By sayin say di Fed no go likely make big cuts for their rates, dis report dey point to say di monetary policy environment fit no too dey accommodative. Historically, sharp moves wey dey waka away from expected rate cuts—like di ones wey happen for late 2018—don dey weigh down risk assets, including equities and cryptocurrencies, cos higher interest rates dey reduce liquidity and increase opportunity costs. Short term, crypto markets fit face wahala cos people no too expect borrowin cost go reduce. Long term, if rates high steady, e fit reduce speculative inflows but also make people try find ways to hedge against inflation. Overall, di cautious Fed stance dey show say crypto traders wey dey expect rally based on rates fit dey face bearish outlook.