A new Reuters survey has brought forth compelling insights, with 108 economists weighing in with their opinion on the latest Federal Reserve stance. A survey conducted by Reuters revealed that the majority of economists, nearly 105 out of 108, believe that the Federal Reserve may finally end up lowering rates as soon as September 17th, easing the bubbling pressure thwarting the US economic flow.

Also Read: Gold Should Be 10–15% of Portfolios, Dalio Urges Investors

Survey Details: Three Fed Rate Cuts to Be Announced Soon

The FED now requires approval before state banks can issue, hold or transact crypto stablecoin payments, according to a press release today.
Source: Bankrate

The US economic development now heavily relies on the looming interest rate cuts that the Federal Reserve is expected to announce soon. A recent Reuters survey revealed that 105 out of 108 economists believe that the interest rate cuts may come as early as September 17th. The economists firmly believe that the interest rates will be slashed by 25 bps, with another cut scheduled for the next quarter. The economists later shared their reasoning backing the rate cut theories, adding the weak jobs data, with a sharp downward inflation, compelling the Fed to schedule additional rate cuts this year.

In addition to this, economists project a minimum of three interest rate cuts. The poll predicts that 105 economists believe the Fed may conduct these cuts twice this year. Reuters adds that the Fed may lower rates by a quarter point to 4.00 to 4.25% starting next week.

“The Fed now has four months of evidence of a slowdown in labor demand that appears more persistent in nature … In short, ignore where inflation is today and ease policy to support the labor market. We think a 25 bp rate cut in September is more likely than a larger cut.” Said Michael Gapen, chief U.S. economist at Morgan Stanley.

The Final Result: Toll On USD?

Interest rate cuts usually bear heavily on the US dollar in general. These cuts may trigger a temporary US dollar downfall, followed by capital outflows, where investors may stash their holdings in other safe-haven assets like Bitcoin/gold. Moreover, interest rate cuts trigger low yields on USD-backed assets, which results in a drop in general US dollar demand.

Great Time For Bitcoin And Gold

The looming Fed rate cut decision may finally come as a blessing in disguise for assets like gold and Bitcoin. Lower interest rates may trigger capital outflows, pushing investors to park these funds in assets like gold and Bitcoin.

Per Katusa Research, gold may hit a new high of $3700 to $4000 in the aforementioned scenario.

BTC may also end up leveraging the current market exodus, with the asset predicted to hit $150,000.

Also Read: Fed Chair Powell: Current Conditions May Allow Interest Rate Cuts

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