The FED and Interest Rates: What to Expect in the Coming Months

Wondering when the interest rate may start declining and when could we all feel the ease in our day to day lives?

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The CME tries to predict it as well, and as it's a presidential year in the US, the FED will start to ease interest rates as we get closer to election time for obvious political reasons.

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CME does not expect the rates to take a cut until March while the most substantial cuts expected by June, leading into the presidential elections.

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This is by no means a given and can change at any stage as these are just predictions by investors within the CME.

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The US has not seen such high inflation rates in many years.

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Since 2021 we have seen inflation grow significantly as a result of the huge amount of money printed post covid pandemic.

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With inflation hitting an average of 4.7% in 2021, 8% in 2022 and 4.1% in 2023, the last time these numbers were seen that high was the early 90's, almost 30 years ago.

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As we said earlier this was due to the overprinting that occurred to 'stimulate the economy', the FED printed approximately 40% of ALL of the existing dollars in existence since 2020.

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This was never going to end well, and it also highlights why we were in an inflationary environment for the last two years.

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We are on the cusp of another big print by the FED as the Reserve Repo is running dry, US national debt is growing exponentially (printing lowers the cost of the government's debt), bank reserves/deposits are waning and, politically speaking, the printing will have to be done for the optics of the current president.

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As they begin to print and dilute your hard-earned dollars even more in the next 12-18 months, consider positioning yourself in assets denominated in USD, such as Bitcoin, Gold, or Stocks.

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Printing more dollars essentially drives up the prices of your investments because, by default, it takes more dollars to purchase them, while the money printer dilutes the US currency.

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