📈Rate Hikes Back on the Table? What Happens
$BTC?
Markets now price a 33% probability that the Federal Reserve will raise rates before January 2027, while the odds of a rate cut this year sit at zero. The key driver? Rising inflation risks amid a global energy shock.
In such a scenario, equities and crypto are likely to take the first hit, with a potential exit from the crisis only coming through a broader global recession.
Meanwhile, Donald Trump takes a very different view:
He expects oil prices to fall quickly after tensions with Iran subside
He anticipates aggressive rate cuts after Jerome Powell leaves the Fed chair in May
He believes the next Fed chair will align more closely with White House direction
Two visions of the future:
tight policy vs. political pressure for easing.