💥📉 Is the Fed About to Shock the Markets? Bank of America Drops a Warning Few Saw Coming… 🤔💣
Why are analysts suddenly talking about January instead of December?
⚡️ “Everyone Expects 25 bps… But Markets May Be Wrong.”
BofA’s Aditya Bhave says traders are sleepwalking into the December meeting — and ignoring the real risk: markets could start pricing a much more aggressive January cut in the coming days. The entire curve could flip faster than Powell can speak. 🔥📊
⚡️ A Hawkish Cut? The Paradox Begins.
Yes, BofA still expects a 25 bps cut in December, but with hawkish forward guidance, dissenting votes, and upgraded growth forecasts for 2025–2026. A cut paired with a warning — the most confusing message the Fed could send. 🔄🎯
⚡️ Powell’s Biggest Problem: Data He Can’t Control.
With a heavy data calendar before January, BofA says Powell will struggle to keep markets from front-running the Fed. Even if he tries to sound tough, one weak jobs print and traders will price two, three — even four cuts. 💼📉
⚡️ Why This Matters for Crypto & Risk Assets? 🚀
Lower-rate expectations = weaker dollar = risk-on rotation. Bitcoin thrives when markets smell liquidity. If January suddenly becomes “Cut Probability 80%+,” crypto could front-run the Fed just like equities. 📈🔥
But if Powell slams the brakes? Volatility shock incoming.
⚡️ The Countdown to January Has Already Begun…
BofA warns: Powell “cannot avoid data dependency.” And markets are ready to pounce on every number — CPI, jobs, PCE, revisions, everything. A single surprise could rewrite the entire rate-cut path. #Fed
📌 DYOR
