๐ Fed Alert: More Rate Cuts on the Horizon? ๐ฆ vs ๐๏ธ
The financial landscape is shifting! BNYโs John Velis is making a bold call that contrasts with what the markets are currently pricing in. While most traders are looking at two rate cuts for the remainder of 2026, BNY is betting on three. ๐ฆ๐ฐ
Hereโs the breakdown of whatโs moving the needle:
Labor Market Cooling: The primary driver for this dovish outlook isn't just "vibes"โit's data. BNY expects deteriorating US labor conditions to force the Fed's hand. ๐๐ผ
Data Over Personality: Despite the chatter about the new Fed Chair's personal leanings, Velis argues that hard economics will dictate policy, not whether the Chair is naturally a hawk or a dove. ๐๐ง
Balance Sheet Risks: A warning shot was fired regarding balance sheet policy. Any sudden changes to reserve management could spark instability in money markets if the Fed doesn't intervene carefully. โ ๏ธ๐ธ
Market Snapshot: * EUR/USD is hovering near 1.1875 as it balances Fed vs. ECB expectations. ๐ช๐บ๐บ๐ธ
Gold (XAU) pulled back slightly to $5,050 after failing to hold the $5,100 mark. ๐โจ
$GBP /USD is seeing some pressure due to BoE dovishness and political uncertainty. ๐ฌ๐ง๐
The bottom line? The market "trades the path, not the past." With payroll numbers recently beating expectations but labor trends showing cracks, the road ahead remains volatile! ๐ข๐ฅ
#FederalReserve #ForexTrading #GoldPrice #Economy2026 #stockmarket
