This Is Peak Hawkishness From The Fed | Joseph Wang

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Dec 18, 2024

Joseph Wang, an expert on the Federal Reserve and financial markets, dives into the latest Fed decisions and their impact on economic projections. He predicts more than two rate cuts next year and expresses a bearish outlook on US equities for 2025. The discussion highlights the Fed's hawkish shift and the market's volatile reaction, while exploring the intricacies of the Fed's communication strategy. Wang also analyzes how geopolitical factors influence asset dynamics, including currencies and commodities like gold and Bitcoin.

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INSIGHT

Hawkish Surprise

The Federal Reserve (Fed) surprised markets with a hawkish stance despite cutting rates.
Their economic projections improved, leading to fewer predicted rate cuts next year.

INSIGHT

Labor Market Influx

The US labor market is being affected by an influx of migrants, similar to other countries.
These newcomers, often with lower skills, face higher unemployment and vulnerability during economic downturns.

INSIGHT

More Rate Cuts Predicted

Joseph Wang believes the Fed will cut rates more than expected due to a rising unemployment rate and potential global recession.
Trump's return and potential trade wars could further dampen economic growth and lead to rate cuts.

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