🟦Friday’s U.S. employment report has set the stage for a potential interest rate cut by the Federal Reserve (Fed). According to 10x Research, the first move could come as early as next week.
🟦A 50 basis point rate cut could signal growing economic concerns or a sense of lag in the fight against an impending economic downturn. This would prompt investors to scale back investments in risky assets such as Bitcoin and stocks. However, the Fed’s main focus will be on mitigating economic risks rather than managing market reactions.
🟦Experts’ opinions on the likelihood of a rate cut vary. Some believe the Fed is behind schedule, having missed signs of weakness in the labor market. Others argue that the economy requires more decisive action from the central bank.
