Renowned Wall Street short seller Peter Berezin predicts that the Federal Reserve will accelerate interest rate cuts in the second half of 2026.

Renowned Wall Street short seller Peter Berezin stated that the stock market decline may be relatively small in early 2026 due to investors shifting from tech stocks to non-tech stocks and from growth stocks to value stocks. He predicts that these factors will ultimately lead to the S&P 500 closing at 5280 points in 2026, a 23% drop for the year, while the Nasdaq Composite will fall by 31%. Furthermore, the dollar is weakening while the yen is appreciating significantly, with the USD/JPY exchange rate expected to reach 115 by the end of the year. Gold prices are also hitting new record highs. Growing concerns about a US recession will prompt the Federal Reserve to accelerate its interest rate cuts in the second half of 2026. By December 2026, the federal funds rate is expected to fall to 2.25%, and the 10-year US Treasury yield to fall to 3.1%. (Jinshi)