Bank of America predicted that the US Federal Reserve could make four times in 2025 in May, July, September and December. This explanation leads to an increase in expectations for possible relaxation in monetary policy, while the possibility of movement due to the increase in liquidity in financial markets is evaluated.
Fed Interest Discount Expectations
The Bank said it is possible that the US Federal Reserve will go to the steps of loosening in monetary policy at the upcoming FOMC meeting. According to this foresight, it is thought that interest reduction can provide additional liquidity to the markets and increase the value of risk assets.
The recently announced consumer price index and manufacturer’s price index indicates that inflation tends to decrease. In the light of the data, expectations of the loosening of monetary policy are strengthened, while uncertainties can be experienced on economic growth.
However, the members of the Fed talk about their statements that they will always act cautiously.
Trade wars
The uncertainty in commercial relations between the US and other countries and the tariffs implemented cause fluctuations in the market. Experts point out that commercial tensions and existing tariffs can have more negative effects on the economic appearance.
Blackrock CEO Larry Fink said he observed signs of recession in the US economy.
Larry Fink: “Symptoms of recession in the US economy are considered as existing.”
This statement is considered as an authorized observation that it may increase the perception of risk in the market.
Boston Fed President Susan Collins said that the Central Bank would intervene when necessary. This explanation points to the steps to be taken to protect the flexibility of reserve policy within the environment of decline and uncertainty in economic indicators.
The prescribed monetary policy regulations and the decline in economic data are among the developments that investors follow carefully. Market participants plan to take strategic steps while evaluating liquidity increase and the effects of commercial tensions.
In the light of developments, as well as economic and political factors, possible changes in monetary policy are among the important factors to determine the course of financial markets. Investors can act by reviewing risk management strategies in line with existing data and official explanations.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
