#FedRateCutPrediction FedRateCutPrediction

We’re heading into the final Fed meeting of the year — and markets are already moving before Powell even speaks. With an 87% probability priced in for a 25 bps rate cut, investors are preparing for a potentially pivotal moment. Will this set the stage for a year-end rally? Here’s my take:

Current Situation
The U.S. economy is slowing, and the labor market is starting to lose momentum.
Inflation remains sticky, and divisions among Fed members are becoming more pronounced.

Bitcoin is trading above $90,000, but heightened volatility is expected following the announcement.
Nasdaq and S&P 500 futures are already reflecting a dovish scenario, indicating strong expectations for easing.

My Prediction
The Fed is likely to cut rates by 25 basis points.
If this happens, we should see a short-term boost in risk appetite, pushing both equities and cryptocurrencies higher. But the medium-term outlook is far more volatile, especially if economic data continues to weaken.

My Strategy
Gradually increasing exposure to technology and financial stocks.
Participating in the crypto momentum, but protecting capital with a strict stop-loss.
Expecting emerging market currencies to strengthen temporarily as the USD softens.

Risks to Watch
Internal disagreements within the Fed could shift market interpretation.
Sticky inflation may force the Fed to pivot back toward tightening.
A classic “buy the rumor, sell the news” reaction could hit crypto immediately after the decision.
Summary
A short-term positive reaction seems likely — but the medium-term landscape will be anything but calm.
This week won’t just move the markets… it may define how 2026 begins.