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FedWatch's Ben Emons forecasts gradual Fed rate cuts in 2026
Youtubeยท 2025-12-26 22:48
Group 1 - The Federal Reserve (Fed) is expected to play a significant role in market dynamics, particularly with the announcement of a new Fed chair and the resolution of the Lisa Cook case, which could influence interest rates and market expectations [2][3][12] - The expansion of the Fed's balance sheet is anticipated to impact broader markets, with liquidity measures contributing to rising gold prices as real interest rates decline [2][10] - The market's response to the new Fed chair nominee remains uncertain, with different candidates potentially having varying effects on equity markets, particularly regarding their stance on quantitative easing and balance sheet management [6][7][12] Group 2 - The steepening of the yield curve is likely to continue, driven by expectations of rate cuts and economic stimulation, which could lead to increased investments and GDP growth [10][11] - Political cycles and the need for stimulative policies may exert pressure on gold prices and the dollar, with market participants wary of how the new Fed chair will interact with the Federal Open Market Committee (FOMC) and the White House [8][12] - The collaboration between Japan and the US to expedite investments is expected to contribute to economic expansion, further influencing the yield curve dynamics [11]