Federal Reserve Faces Complex Decision Amid Geopolitical Tensions and Inflation

According to Foresight News, QCP Capital has released a market analysis highlighting the challenges faced by the Federal Reserve as it prepares to make a decision on interest rates amid rising geopolitical tensions and inflation pressures. The market currently anticipates two rate cuts in 2025 and another two in 2026. However, QCP Asia suggests that the Federal Reserve may adopt a more cautious tone in its Summary of Economic Projections (SEP), potentially indicating only one rate cut in 2025, contrary to market expectations. If the Federal Reserve opts for this adjustment, it could exert pressure on risk assets, including Bitcoin and the broader digital asset market, due to reduced liquidity expectations. This potential shift in monetary policy underscores the complexity of the current economic landscape, influenced by both international conflicts and domestic inflationary trends.