Market's 2025 interest rate cut expectations have reversed dramatically. A grand drama of "America against America" is about to unfold!?
The market's expectations for interest rate cuts in 2025 have undergone a dramatic reversal in just a few months: from the previous expectation of consecutive rate cuts starting at the beginning of 2025, reducing the interest rate to around 3% by mid-2025, to now anticipating a 25 basis point cut in December, followed by a halt in rate cuts in January, after which we will have to wait and see... Why has the market experienced such a significant reversal in expectations? Why is this reversal expected to be one of the biggest uncertainties the market will face in 2025?
The market's expectations for interest rate cuts in 2025 have undergone a dramatic reversal in just a few months: from the previous expectation of consecutive rate cuts starting at the beginning of 2025, reducing the interest rate to around 3% by mid-2025, to now anticipating a 25 basis point cut in December, followed by a halt in rate cuts in January, after which we will have to wait and see...
Why has the market experienced such a significant reversal in expectations?
Why is this reversal in expectations considered one of the biggest uncertainties the market will face in 2025?