Moody's Economist Predicts Three Fed Rate Cuts Before June
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Rate Cut Prediction: Mark Zandi from Moody's forecasts three interest rate cuts by the Fed before June, each by 0.25 percentage points, reflecting concerns over ongoing job market weakness and unstable inflation signals, which could lead to slower economic growth.
- Weak Job Market: Zandi highlights that businesses are hesitant to hire due to recent changes in trade and immigration policies, which is expected to increase unemployment and compel the Fed to adopt more aggressive rate cuts to stimulate the economy.
- Increased Political Pressure: With Trump regaining control over Fed appointments, Zandi warns that this could lead to heightened political pressure on the Fed to lower rates, further eroding its independence.
- Divergence from Market Expectations: Unlike the market's expectation of two rate cuts, Zandi believes cuts will occur earlier and more frequently, potentially impacting investor confidence in future economic policies.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
