2026 rate outlook? One major bank's calling it asymmetric risk territory.
Their take: U.S. rates are walking into the new year with disinflation basically stuck, growth all over the map, and labor markets showing cracks. Treasuries crushed it in 2025, sure—but now the Fed's got a problem. How do you justify the aggressive cuts everyone's pricing in when the data's this messy?
What they're watching: inflation not budging, uneven economic signals, and employment softness creeping in. Market's betting on dovish moves, but the setup doesn't scream "easy decision" for policymakers. Risk-reward's lopsided here.
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OnchainHolmes
· 7h ago
With data this messy, there's no way the Fed would make significant rate cuts. Feels like the market is dreaming.
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TestnetFreeloader
· 16h ago
Damn, with data this chaotic, what else can the Fed do... just keep pretending not to see it?
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Degen4Breakfast
· 16h ago
Powell must be crazy. The data is such a mess, yet he still wants to aggressively cut the interest rate spread. In my opinion, 2026 is just a smokescreen.
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TokenomicsPolice
· 16h ago
The Fed guys are really stuck between a rock and a hard place. These messy data figures make it impossible to make a clear decision.
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SerNgmi
· 16h ago
Wait, inflation is stuck and they still want to slash rates aggressively? The Fed is definitely in a bit of an awkward spot this time.
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NFTPessimist
· 17h ago
The Fed is about to be forced to dance to the market's tune again. With data this bad, do they still want to aggressively cut rates? I doubt it...
2026 rate outlook? One major bank's calling it asymmetric risk territory.
Their take: U.S. rates are walking into the new year with disinflation basically stuck, growth all over the map, and labor markets showing cracks. Treasuries crushed it in 2025, sure—but now the Fed's got a problem. How do you justify the aggressive cuts everyone's pricing in when the data's this messy?
What they're watching: inflation not budging, uneven economic signals, and employment softness creeping in. Market's betting on dovish moves, but the setup doesn't scream "easy decision" for policymakers. Risk-reward's lopsided here.