FOMC Cuts Rates, But Pace Of Easing Ahead Likely Will Slow

WELLS FARGO

Economic

Central Bank

Summary:

Wording in the post-meeting statement was changed to signal that further easing may proceed at a slower pace.

Summary

As widely expected, the FOMC cut the target range for the federal funds rate by 25 bps at today’s meeting. However, one Committee member, who preferred to keep rates on hold, dissented.

The median dot for 2025 in the so-called “dot plot” was raised by 50 bps. In September, the median FOMC member looked for 100 bps of policy easing next year. The median forecast today looks for only 50 bps of rate cuts next year.

The wide dispersion in the dot plot for next year may reflect some uncertainty regarding the policy agenda that the incoming administration may pursue. Notably, the range of core PCE inflation forecasts for 2025 widened considerably.

Fed Cuts Rates but Forward Guidance Is Hawkish

As widely expected by market participants, the Federal Open Market Committee (FOMC) reduced its target range for the federal funds rate by 25 bps at its policy meeting today (Figure 1). The FOMC has now cut its target range by 100 bps from its peak of 5.25%-5.50% through moves of 50 bps in September, 25 bps in November and 25 bps today. Although the Committee eased policy today, we would characterize the decision as a “hawkish” rate cut.

For starters, Beth Hammack, the president of the Federal Reserve Bank of Cleveland, dissented today, voting to keep rates on hold instead. In that regard, Chair Powell noted in his post-meeting press conference that today was a “closer call” to cut rates by 25 bps than it was in November. Secondly, the Committee made a notable change to its post-meeting statement. The statement that was released following the last FOMC meeting on November 7 contained the following clause: “In considering additional adjustments to the target range for the federal funds rate…” This clause implied that the FOMC thought last month that it would continue to ease policy in coming months. That clause was changed to the following in today’s statement: “In considering the extent and timing (emphasis ours) of additional adjustments to the target range for the federal funds rate…” This rewording of the clause implies to us that the FOMC may now pause in the next meeting or two to ascertain how much additional policy easing may be appropriate.

The FOMC also released its quarterly Summary of Economic Projections (SEP) today. As we projected in our recent Flashlight report, the median forecast for real GDP growth in 2025 was revised a touch higher, the unemployment rate forecast for the end of next year edged down from 4.4% in the September SEP to 4.3% in today’s projections, while the core PCE inflation rate for 2025 was pushed up from 2.2% to 2.5%. Accordingly, the median dot in the so-called “dot plot” rose by 50 bps for 2025 (Figure 2). In September, the median FOMC member thought that a target range for the federal funds rate of 3.25%-3.50% would be appropriate at the end of 2025. The median FOMC member today now thinks that a range of 3.75%-4.00% will be appropriate. In other words, the median member now thinks that only 50 bps of additional easing next year will be warranted if conditions evolve as expected.

That said, the dots for next year are widely dispersed. The most dovish Committee member thinks that 125 bps of additional easing would be appropriate next year, while the most hawkish member sees no additional rate cuts from today’s level. This dispersion may reflect uncertainty surrounding the policy agenda that the incoming Trump administration may pursue in 2025. Notably, the range of forecasts among FOMC members for core PCE inflation, which the Fed believes is the best measure of the underlying rate of consumer price inflation, widened meaningfully for next year between September and December. The range for 2025 core PCE inflation in the September projection was 2.1% to 2.5%. The range in today’s SEP widened to 2.1% to 3.2%. Some FOMC members may be assuming that tariff hikes, should they go into effect, will raise inflation next year. (See the report we wrote in July for further discussion of the macroeconomic effects of tariffs.)

In sum, today’s FOMC meeting leads us to believe that, barring some dramatic unexpected development, the Committee likely will keep rates on hold at its next meeting on January 29. However, we believe the FOMC will continue to ease policy next year, albeit at a slower pace than over the past few months. Chair Powell seemed to support this expectation when he noted in his presser that the stance of monetary policy is “significantly closer to neutral” than it was previously, but that policy is “still meaningfully restrictive.”

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Owen Li

Economic

Central Bank

Stocks

Wall Street closed sharply lower on Wednesday, with the Dow falling over 1,100 points after the U.S. Federal Reserve delivered a rate cut as expected but signaled it will ease the pace of further cuts in the coming year.

For the Dow it was its tenth consecutive daily loss, marking its longest losing streak since 1974 and its biggest daily percentage decline since early August. The Nasdaq and S&P 500 also logged their largest one-day drops in months.

Benchmark Treasury yields moved higher on the news, and the dollar gained.

"Let's not forget, you tend to get knee-jerk reactions on Fed Day and then cooler heads prevail the next day," said Ryan Detrick, chief market strategist at Carson Group in Omaha. "The reality is still we have a strong economy and a Fed that is by no means looking to hike any time soon. There are still cuts, likely coming just a little later in 2025."

As expected, the Federal Open Market Committee (FOMC) cut the Fed funds target rate by 25 basis points at the conclusion of its final policy meeting of 2024.

But the central bank also reduced the number of projected rate cuts in the coming year. The policymakers now expect two interest rate cuts by the end of 2025, down from four in September, and set up the likelihood of a pause in January.

"The Fed didn't throw any curveballs, right? They cut as expected, and they're using language hinting at fewer cuts next year and into 2026," Detrick added. "The market was holding out hope that maybe there'd be a little more dovishness to the statement, but that wasn't the case."

In his subsequent press conference, Fed Chair Jerome Powell offered assurances that the economy is strong, inflation has come closer to the 2 percent goal, and monetary policy is well-positioned to deal with risks.

The Dow Jones Industrial Average fell 1,123.03 points, or 2.58 percent, to 42,326.87, the S&P 500 fell 178.57 points, or 2.95 percent, to 5,872.03 and the Nasdaq Composite fell 716.37 points, or 3.56 percent, to 19,392.69.

Earlier, European shares closed modestly higher, buoyed by technology stocks and French automaker Renault, but gains were held in check ahead of the Fed's rate decision.

MSCI's gauge of stocks across the globe fell 8.93 points, or 1.03 percent, to 855.09.

The STOXX 600 index rose 0.15 percent, while Europe's broad FTSEurofirst 300 index rose 2.56 points, or 0.13 percent.

Emerging market stocks fell 0.39 points, or 0.04 percent, to 1,092.81. MSCI's broadest index of Asia-Pacific shares outside Japan closed lower by 0.05 percent, to 579.42, while Japan's Nikkei fell 282.97 points, or 0.72 percent, to 39,081.71.

Yields for 10-year U.S. Treasuries gained after the Fed flagged the slower pace of easing.

The yield on benchmark U.S. 10-year notes rose 11.3 basis points to 4.498 percent, from 4.385 percent late on Tuesday.

The 30-year bond yield rose 7.3 basis points to 4.6525 percent from 4.579 percent late on Tuesday.

The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 10.5 basis points to 4.346 percent, from 4.241 percent late on Tuesday.

The dollar extended its gains against a basket of world currencies as investors digested the Fed's revised outlook.

The dollar index rose 1.09 percent to 108.09, with the euro down 1.13 percent at $1.037.

Against the Japanese yen, the dollar strengthened 0.76 percent to 154.63.

Bitcoin accelerated its losses after Powell said the Fed has no desire to hold the cryptocurrency amid debate over whether the incoming Trump administration might build a bitcoin reserve.

Bitcoin fell 5.17 percent to $100,916.00. Ethereum declined 6.14 percent to $3,692.50.

Oil prices settled higher in the wake of the Fed's decision.

U.S. crude rose 0.71 percent to settle at $70.58 per barrel, while Brent settled at $73.39 per barrel, up 0.27 percenton the day.

Gold fell in opposition to the greenback. Spot gold fell 1.94 percent to $2,594.24 an ounce. U.S. gold futures fell 2.05 percent to $2,590.20 an ounce. (Reuters)

Source: Koreatimes

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ING

Economic

Central Bank

4.25-4.50%

Fed funds target rate range

25bp from the Fed, but less in 2025

The Federal Reserve has cut rates 25bp, as expected. This brings us to 100bp of cumulative cuts since September, but the Fed is indicating a much slower, more gradual series of rate cuts in the future. 50bp of cuts is now their baseline for 2025 based on the median of their individual forecast submissions, versus the 100bp that they were projecting in September. The change of view is on the back of higher inflation forecasts predominantly – the core PCE deflator is now expected to end 2025 at 2.5% rather than 2.2% as previously thought and isn’t expected to get down to 2% until 2027. It also has to be viewed in the context whereby the economy is still growing robustly, the jobs market cooling, but not collapsing and equity markets at all-time highs.

Federal Reserve forecasts versus September projections

Source: Federal Reserve, ING

Trump's plans for 2025 to determine how far the Fed can cut

50bp of policy rate cuts for 2025 was what the market was pricing ahead of time so reaction shouldn't have been that huge, but less confidence on inflation slowing sufficiently and the fact we had one FOMC member dissenting – Cleveland Fed President Hammack preferring no change – means markets aren’t fully pricing another cut until July with only 35bp now priced for 2025 in total. January’s FOMC is almost certainly going to see the Fed hold rates steady, but we will have a much clearer understanding of President-elect Trump's tariff, tax and spending intentions at the March FOMC meeting.

The Fed has previously suggested that they are not going to pre-empt those proposals and only take them into account when they are implemented. Nonetheless, given his policy thrust of immigration controls and tariffs, which could result in higher inflation, plus cuts to regulation and tax cuts designed to juice growth, we expected the Fed signals a shallower, slower path of easing through 2025. Ahead of time we were forecasting three 25bp rate cuts next year rather than the two 25bp the Fed suggest, but there is a huge amount of uncertainty given a lack of clarity on how far and how fast President Trump will go on policy, plus how quickly the jobs market is actually cooling and what this means for inflation. As such, we will keep our forecasts unchanged for now,

The recalibrated market discount for the funds rate exposes the 10yr rate as still too low here

The 25bp cut itself was expected, but the big news is the larger-than-expected upward shift in the dot plot. The Fed now pitches the funds rate at 3.875% next year. That’s up 50bp from what they had before. In fairness though, the market’s discount had changed dramatically too in the past couple of months. Still, the market reaction is higher rates along the curve. Looking at the 2yr now at over 4.3%, it’s likely overreacted to the upside. While the 10yr rate is back to the 4.45%, back to where it was just post the Trump re-election. Little reason for this to collapse back lower based on what we know.

Noteworthy here is the upside shift in the market expectation for the effective fund rate for end-2025. This is now up to almost 4%. In other words the market is questioning whether the Fed delivers a final 25bp cut to get the funds rate below 4%. That pitches the implied “floor” for longer tenor rates at or about 4% (or just under). Contrast against that where the 10yr SOFR rate is now, at 3.95%. That’s essentially flat to the expected landing area for the funds rate. Something is mis-priced here. Either the Fed is going to cut by more than that. Or, and more likely, longer tenor rates are too low. As a call for 2025, we still see 4.5% for 10yr SOFR and 5%+ for the 10yr Treasury yields as viable targets.

The Fed also made an important technical adjustment to the overnight reverse repo rate (cut by 30bp), and now flat to the new Fed funds floor at 4.25% (cut by 25bp). This was broadly anticipated. It reduces the compensation obtainable at the reverse repo window, and should prompt less use of that window at the margin. Having a 5bp cushion made sense when the funds rate floor was a zero (to prevent a zero print). Now there is no cushion, but also no need for one. The effective funds rate should not be impacted in the sense that it should remain c.8bp above the floor. Although there can by a mild bias lower if anything.

Fed fires up the next leg of the dollar rally

Instead of quietly slipping into year-end, FX markets have been given a wake up call today that the Fed is looking at a higher inflation and interest rate profile over a multi-year horizon. Short-dated US swap rates have jumped 8bp on the news and pushed dollar rate differentials close to the widest levels of the year.

While a stronger dollar is very much a consensus (and our own view) for 2025, today’s bearish flattening of the US curve – telling us the Fed will not be providing as much monetary stimulus as first thought – is a clearly bullish factor for the dollar. It is also a bearish factor for the more pro-cyclical currencies in Europe and Asia and will weigh on commodity currencies – already under pressure on faltering Chinese growth and the prospect of Donald Trump’s trade agenda.

Expect EUR/USD to continue defying seasonal buying pressure – and we think 1.02/1.03 is possible over coming weeks. USD/JPY risks surging through 155 – although today’s hawkish Fed event makes it a little more likely that the Bank of Japan surprises with a rate hike tomorrow. And as above the commodity complex should stay under pressure. This is especially so for the Canadian dollar, which now has domestic turmoil to deal with as well.

Today’s event risk is going to prove a further headache for the People’s Bank of China as they try to hold onshore USD/CNY below 7.30 – even though USD/CNH can push well above that level. And bearish flattening of the US curve is bearish for most emerging currencies and especially the Brazilian real – which is off another 2% today. This heaps pressure on the Lula administration to deliver much needed fiscal consolidation – it cannot solely depend on the local central bank to save the real.

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Glendon

Economic

The EUR/CHF currency pair, representing the euro against the Swiss franc, is one of the most traded pairs in the forex market. This relationship is not just a reflection of two currencies; it embodies the economic and political intricacies of the Eurozone and Switzerland. Understanding the EUR/CHF pair is essential for traders looking to capitalize on its movements and manage their investment risks effectively.

Historical Context

Historically, the EUR/CHF pair has been characterized by relative stability compared to other currency pairs. This stability stems from Switzerland’s robust economy, low inflation rates, and the Swiss franc's reputation as a safe-haven currency. The euro, on the other hand, is influenced by the economic performance of its member countries, making the pair susceptible to geopolitical events, economic data releases, and central bank policies.

The introduction of the euro in 1999 marked a significant shift in European financial markets, impacting the EUR/CHF dynamics. Initially, the pair experienced fluctuations as traders adjusted to the new currency's value. However, over the years, it has settled into a more predictable trading range, particularly as the European Central Bank (ECB) and the Swiss National Bank (SNB) implemented policies to stabilize their respective currencies.

Economic Indicators and Their Impact

Several key economic indicators influence the EUR/CHF pair:

Interest Rates: The monetary policies of the ECB and SNB play a crucial role. Higher interest rates in the Eurozone can strengthen the euro against the Swiss franc, while lower rates can have the opposite effect. Traders closely monitor central bank meetings and statements for clues about future rate changes.

Inflation Rates: Inflation data from both regions can impact purchasing power and currency strength. A rise in inflation in the Eurozone may lead to speculation about ECB rate hikes, influencing the EUR/CHF exchange rate.

Economic Growth: GDP growth rates provide insight into the economic health of both regions. Strong growth in the Eurozone typically supports the euro, while economic downturns can lead to a flight to the safety of the Swiss franc.

Political Stability: Switzerland is known for its political neutrality and stability, which enhances the appeal of the Swiss franc during times of global uncertainty. Conversely, political tensions within the Eurozone can lead to volatility in the EUR/CHF pair.

Trading Strategies

Traders looking to capitalize on movements in the EUR/CHF pair can employ various strategies:

Technical Analysis: Analyzing price charts, trends, and patterns can help traders identify entry and exit points. Common indicators include moving averages, Relative Strength Index (RSI), and Fibonacci retracement levels.

Fundamental Analysis: Understanding the economic indicators and news events that impact the EUR/CHF pair is crucial. Traders should stay informed about ECB and SNB announcements, economic data releases, and geopolitical developments.

Risk Management: Given the potential for volatility, implementing effective risk management strategies is essential. This includes setting stop-loss orders, diversifying positions, and managing leverage.

Correlation with Other Markets: The EUR/CHF pair often correlates with other currency pairs and commodities. Traders can use this information to predict movements based on broader market trends.

Conclusion

The EUR/CHF currency pair offers traders a unique opportunity to navigate the complexities of European and Swiss economies. With its historical stability and the influence of key economic indicators, understanding the dynamics of this pair is vital for informed trading decisions. As always, staying updated on market trends and employing sound trading strategies will be crucial for success in the forex market. Whether you are a seasoned trader or a newcomer, the EUR/CHF pair remains a compelling option in the ever-evolving landscape of currency trading.

To stay updated on all economic events of today, please check out our Economic calendar

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Warren Takunda

Cryptocurrency

Bitcoin price dips will be short-lived in 2025 due to strong institutional demand, say Bitfinex analysts, who predicted a best-case scenario of Bitcoin doubling in price by June 2025.

Bitfinex analysts said in a Dec. 17 market report that their minimum price estimates “stand at $145,000 by mid-2025, potentially stretching to $200,000 under favorable conditions.”

Bitcoin volatility expected in first quarter

“Our view is that any corrections in 2025 will remain mild, thanks to institutional inflows,” the analysts said. They noted that while Bitcoin volatility is expected in Q1 2025, the broader trend suggests continued price growth, driven by ongoing inflows into spot Bitcoin exchange-traded funds (ETFs) and increased global and institutional adoption.

About $36 billion has flowed into United States-based spot Bitcoin ETFs since they launched in January, Farside Investors data shows.

“The BTC ETFs are one of the largest cohorts of Bitcoin holders at over 1.13 million BTC,” the analysts said. Bitcoin May Hit $200K by Mid-2025 as Price Drops ‘Will Remain Mild,’ Says Bitfinex_1

Bitcoin May Hit $200K by Mid-2025 as Price Drops ‘Will Remain Mild,’ Says Bitfinex_1

Bitcoin was trading at $105,360 at the time of publication. Source: CoinMarketCap

At the time of publication, Bitcoin was trading at $105,360, a price that Castle Island Ventures’ partner Nic Carter said could grow nearly ninefold in the long term.

“Long-term, I’m looking for Bitcoin to match the market cap of gold, which would price Bitcoin at $900,000,” Carter told Bloomberg Television on Dec. 17.

Bitcoin author Andy Edstrom said on Dec. 16 that he is already “struggling to get used to the fact that $1,000 is less than a 1% move in Bitcoin’s price.”

Bitfinex analysts said that if Bitcoin mirrors the 2021 cycle, with a roughly 40 percent increase above its moving averages, it could potentially “reach around $339,000.”

“In the less likely scenario that the extended 2017 cycle repeats with similar diminishing returns, Bitcoin could peak around $290,000 by early 2026,” they said.

US Bitcoin reserve may change the narrative

Meanwhile, the possibility of the incoming Trump administration creating a strategic Bitcoin reserve in the United States has the crypto industry speculating that the market narrative could move into uncharted territory.

“If one country implements a Bitcoin strategic reserve, you can kiss goodbye to your 4-year cycles,” crypto analyst Tyler Durden said in a Dec. 17 X post.

After Donald Trump won the election on Nov. 5, pro-crypto Senator Cynthia Lummis said she would move forward with legislation for the US government to buy Bitcoin and hold it for at least 20 years.

Source: Cointelegraph

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Glendon

Economic

The DAX 30 Index, also known simply as the DAX, is one of the most important stock market indices in Europe and serves as a benchmark for the performance of the German equity market. Comprising 30 major German companies listed on the Frankfurt Stock Exchange, the DAX provides a snapshot of the health and performance of the German economy. This article aims to delve into the DAX 30 Index, exploring its components, significance, and the factors influencing its movements.

What is the DAX 30 Index?

The DAX 30 Index was established in 1988 and is calculated based on the market capitalization of its constituent companies, adjusted for free float. This means that only the shares available for trading are considered, providing a more accurate representation of the market's performance. The index is updated every second during trading hours and is a key indicator of the overall economic sentiment in Germany and, by extension, in Europe.

Key Components of the DAX 30

The DAX 30 includes some of the largest and most influential companies in Germany, spanning various sectors such as automotive, pharmaceuticals, technology, and finance. Notable constituents include:

Volkswagen AG: One of the world's leading automobile manufacturers.

Siemens AG: A global powerhouse in electronics and electrical engineering.

Bayer AG: A major player in the life sciences sector, particularly in pharmaceuticals and agriculture.

SAP SE: A leader in enterprise software solutions.

These companies not only impact the DAX’s performance but also reflect broader economic trends within Germany and the European Union.

Why is the DAX 30 Important?

The DAX 30 serves multiple purposes in the financial ecosystem:

Economic Indicator: The DAX is a critical barometer of the German economy, reflecting the performance of major corporations that contribute significantly to GDP. Investors often look to the DAX for insights into economic stability and growth prospects in Germany.

Investment Benchmark: Many investment funds and portfolios use the DAX as a benchmark to assess performance. It allows investors to gauge whether their investments are keeping pace with the broader market.

Trading Opportunities: The DAX is widely traded in various forms, including futures and options contracts. Day traders and institutional investors often exploit its volatility for short-term gains.

Factors Influencing the DAX 30 Index

Several factors can impact the performance of the DAX 30, including:

Economic Data: Key economic indicators such as GDP growth, unemployment rates, and manufacturing output can influence investor sentiment and lead to fluctuations in the DAX.

Global Events: Political instability, trade agreements, and international relations can affect the overall market sentiment, impacting the DAX. For instance, developments in U.S.-China trade relations can have ripple effects on European markets.

Monetary Policy: The policies of the European Central Bank (ECB) regarding interest rates and quantitative easing can significantly impact the DAX. Lower interest rates tend to boost market performance as borrowing costs decrease.

Investing in the DAX 30

For investors looking to gain exposure to the DAX 30, there are several strategies to consider:

Direct Investment: Purchasing shares of individual DAX constituent companies allows investors to capitalize on specific growth stories. However, this approach requires thorough research and understanding of each company’s fundamentals.

Exchange-Traded Funds (ETFs): ETFs that track the DAX 30 index provide an easy way to gain diversified exposure to the entire index without needing to buy individual stocks. This can mitigate risk and simplify investment strategies.

Futures and Options: For more experienced traders, DAX futures and options present opportunities for hedging or speculating on the index’s movements. This approach requires a good understanding of market dynamics and risk management.

Conclusion

The DAX 30 Index serves as a vital indicator of the health of the German economy and offers numerous opportunities for investors. Understanding its components, the factors that influence its performance, and the various investment strategies available can empower traders and investors alike to make informed decisions. As global markets continue to evolve, the DAX will likely remain a focal point for those seeking to navigate the complexities of the European financial landscape.

To stay updated on all economic events of today, please check out our Economic calendar

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Glendon

Economic

In the realm of economics, various indicators help analysts and policymakers gauge the health of an economy. Among these, the Core Personal Consumption Expenditures (Core PCE) index stands out as a pivotal measure of inflation. This article aims to unpack the concept of Core PCE, its calculation, significance, and implications for both the economy and individual investors.

What is Core PCE?

Core PCE is a measure of the prices paid by consumers for goods and services, excluding the more volatile categories of food and energy. The rationale behind excluding these categories is that they can experience significant price fluctuations due to factors such as seasonal changes, geopolitical tensions, or supply chain disruptions. By focusing on the remaining components, Core PCE provides a more stable view of underlying inflation trends.

The Core PCE index is released monthly by the Bureau of Economic Analysis (BEA) and is often considered the Federal Reserve's preferred measure of inflation. This preference stems from its comprehensive nature and its ability to reflect consumer behavior more accurately than other indices, such as the Consumer Price Index (CPI).

How is Core PCE Calculated?

The calculation of Core PCE involves several steps. First, the BEA collects data on the prices of a wide range of consumer goods and services. This data is then adjusted to eliminate the effects of food and energy prices, resulting in the 'core' measure. The Core PCE index is expressed as a percentage change from the previous period, allowing analysts to discern whether inflation is rising or falling.

The formula for calculating the Core PCE index can be simplified as follows:

Understanding Core PCE: A Key Indicator for Economic Health_1

This calculation enables economists to assess trends over time and make informed predictions about future economic conditions.

Why is Core PCE Important?

Monetary Policy: The Federal Reserve closely monitors Core PCE when making decisions about interest rates and other monetary policy tools. A rising Core PCE suggests increasing inflation, which may prompt the Fed to raise interest rates to cool off the economy. Conversely, a declining Core PCE could lead to rate cuts to stimulate spending and investment.

Market Reactions: Financial markets react strongly to Core PCE data. Investors often adjust their portfolios based on inflation expectations. For instance, if Core PCE is higher than anticipated, it may lead to a sell-off in bonds and a rise in interest rates, affecting stock prices.

Consumer Behavior: Understanding Core PCE helps consumers and businesses make better financial decisions. For example, if Core PCE is rising, consumers may choose to make large purchases sooner rather than later to avoid higher prices in the future.

Implications for Investors

For individual investors, Core PCE serves as a crucial indicator to monitor. Knowing the trends in Core PCE can help investors make informed decisions about asset allocation. For instance, in a rising inflation environment indicated by a high Core PCE, investors might consider shifting their portfolios towards assets that historically perform well during inflationary periods, such as commodities or real estate.

Additionally, fixed-income investments, like bonds, may become less attractive if inflation is expected to rise, as they offer fixed returns that could be eroded by inflation. As such, understanding Core PCE can guide investors in adjusting their risk exposure and investment strategies.

Conclusion

Core PCE is a vital economic indicator that provides insights into inflation trends and consumer spending. It plays a significant role in shaping monetary policy, influencing financial markets, and guiding consumer behavior. For investors, keeping a close eye on Core PCE can be instrumental in making informed financial decisions and navigating the complexities of the economic landscape. Understanding this key measure not only empowers investors but also equips them with the knowledge to anticipate changes in the financial environment, ensuring they remain proactive in their investment strategies.

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FOMC Cuts Rates, But Pace Of Easing Ahead Likely Will Slow

Summary

Fed Cuts Rates but Forward Guidance Is Hawkish

Wall Street Tumbles As Fed Projects Slower Rate Cuts Next Year

Source: Koreatimes

Fed Confirms A Slower And Shallower Rate Cut Story For 2025

25bp from the Fed, but less in 2025

Source: Federal Reserve, ING

Trump's plans for 2025 to determine how far the Fed can cut

The recalibrated market discount for the funds rate exposes the 10yr rate as still too low here

Fed fires up the next leg of the dollar rally

Trading EUR/CHF: Unlocking the Secrets of Euro and Swiss Franc Movements

Historical Context

Economic Indicators and Their Impact

Trading Strategies

Conclusion

Bitcoin May Hit $200K by Mid-2025 as Price Drops ‘Will Remain Mild,’ Says Bitfinex

Bitcoin volatility expected in first quarter

Bitcoin was trading at $105,360 at the time of publication. Source: CoinMarketCap

US Bitcoin reserve may change the narrative

Source: Cointelegraph

What is DAX 30 Index

What is the DAX 30 Index?

Key Components of the DAX 30

Why is the DAX 30 Important?

Factors Influencing the DAX 30 Index

Investing in the DAX 30

Conclusion

Understanding Core PCE: A Key Indicator for Economic Health

What is Core PCE?

How is Core PCE Calculated?

Why is Core PCE Important?

Implications for Investors

Conclusion

Risk Disclosure