Market's 2025 interest rate cut expectations have reversed dramatically. A grand drama of "America against America" is about to unfold!?

Wallstreetcn
2024.12.13 23:41
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The market's expectations for interest rate cuts in 2025 have undergone a dramatic reversal in just a few months: from the previous expectation of consecutive rate cuts starting at the beginning of 2025, reducing the interest rate to around 3% by mid-2025, to now anticipating a 25 basis point cut in December, followed by a halt in rate cuts in January, after which we will have to wait and see... Why has the market experienced such a significant reversal in expectations? Why is this reversal expected to be one of the biggest uncertainties the market will face in 2025?