Wall Street Projections: Cooling Inflation, Rate Cuts, and Crypto Market Recovery - What's Next for the Economy?

EddieJayonCrypto

 22 Dec 23

tl;dr

The U.S. Bureau of Economic Analysis is expected to announce a cooling annual PCE inflation rate and a rise in Core PCE inflation for November. Wall Street estimates align with projections of three rate cuts in 2024, with a high probability of rate cuts starting in March. The US Dollar Index is anti...

```html

The U.S. Bureau of Economic Analysis is expected to announce a cooling annual PCE inflation rate and a rise in Core PCE inflation for November. Wall Street estimates align with projections of three rate cuts in 2024, with a high probability of rate cuts starting in March. The US Dollar Index is anticipated to decline further, and the crypto market is experiencing a recovery with Bitcoin and top altcoins up in anticipation of a Santa Claus rally.

The U.S. Bureau of Economic Analysis will announce the personal consumption expenditures (PCE) inflation data for November today. The annual PCE inflation is expected to further cool to 2.8% from 3 last month, with no rise in the monthly rate. Also, the Core PCE, the Fed’s preferred gauge to measure inflation, is expected to rise 0.2% month-on-month while the annual rate is predicted to decline to 3.3%, marking its lowest level since 2021. Wall Street estimates are mostly in line with market consensus in response to recent Fed Chair Jerome Powell’s projecting three rate cuts in 2024. The market currently has a 45% chance that the Fed will start rate cuts in March. Moreover, the CME FedWatch shows a 71% probability of a 25 bps rate cut in March.

Disclaimer:
This is not financial advice. Please do your own research before investing in any asset.