#DollarIndex #Inflation Dropping fast 📉
It looks like the market is pricing in an aggressive Fed rate cut.
Same story with government bond yields, dropping fast.
We've moved from expecting a soft landing with a gradual cut to 2-3 cuts now priced in, as recession risks grow.
📊 What does this mean for risk assets?
- Short-term bullish: Lower yields and rate cut expectations can fuel liquidity inflows into stocks and crypto.
- Long-term uncertain: If cuts are driven by recession fears, risk assets may struggle once the slowdown materializes.
It looks like the market is pricing in an aggressive Fed rate cut.
Same story with government bond yields, dropping fast.
We've moved from expecting a soft landing with a gradual cut to 2-3 cuts now priced in, as recession risks grow.
📊 What does this mean for risk assets?
- Short-term bullish: Lower yields and rate cut expectations can fuel liquidity inflows into stocks and crypto.
- Long-term uncertain: If cuts are driven by recession fears, risk assets may struggle once the slowdown materializes.