Hashtag
Men's Weekly

VT Markets Releases Fed Policy Analysis Report Predicting USD Outlook for 2025

HONG KONG SAR – Media OutReach Newswire – 30 December 2024 - In September 2024, the Federal Reserve initiated a rate-cutting cycle, lowering rates three times over the year by a total of 100 basis points to a range of 4.25%-4.5%.

While this trajectory appears stable on the surface, the VT Markets research team highlights that factors like inflation rebounds, new government policies, and optimistic economic forecasts might compel the Fed to adopt a more cautious stance on its easing strategy.

The Federal Reserve's "defensive" strategy, in this way, can be interpreted as either a "precise" market insight or a precautionary measure. The VT Markets Research Desk proposes the following perspectives for analysis.

Dot Plot Adjustments May Indicate Slower Rate Cuts

First, the Research Desk considers that during the December Federal Open Market Committee (FOMC) meeting, an 11:1 vote resulted in a rate cut to 4.25%-4.5%, aligning with market expectations. However, the updated dot plot projections surprised markets, slashing 2025's expected rate cuts from four to two.

Although this shift caused short-term market ripples, VT Markets suggests the slower pace reflects economic resilience and labor market strength. The Fed appears focused on avoiding over-stimulation and carefully balancing economic growth against inflation risks.

Strong Economic Data Supports Policy Shift

The Summary of Economic Projections (SEP) reinforces the Fed's cautious approach, with GDP growth forecasts for 2024 and 2025 revised upward from 2% to 2.5% and 2.1%, respectively. Core Personal Consumption Expenditures (PCE) inflation forecasts also rose from 2.2% to 2.5%.

Fed Chair Jerome Powell highlighted these optimistic trends during the Fed's press briefing, emphasising that reduced job market risks and declining housing inflation are pivotal in shaping future rate adjustments.

Challenges from Trump Administration Policies and Inflation Balance

As the Trump administration prepares to take office, the potential impact of its economic policies on inflation and rate cuts remains a focal point. Powell acknowledged that Fed officials have considered factors such as increased tariffs and reduced corporate taxes in their projections. Historical data, however, suggests that trade policies have minimal direct influence on inflation. For example, the 2018-2019 trade wars did not significantly raise inflation due to the limited share of imports in overall consumption.

The Research Desk believes that oil prices remain the primary determinant of inflation trends. The Trump administration's low-oil-price strategy could suppress inflation further, providing more flexibility for the Fed to maintain accommodative policies through 2025.

USD Rebound and Market Outlook

Driven by shifting Fed policies and robust economic data, the U.S. Dollar Index rebounded in Q4 2024, achieving three consecutive months of gains and reaching a two-year high in late November. However, VT Markets anticipates that as 2025 progresses, these expectations may begin to materialise. If inflation rebounds less than anticipated, the Fed could adopt a more dovish stance, potentially capping the Dollar Index's upward trajectory.

Based on these insights, the VT Markets Research Desk advises investors to proceed cautiously, avoid aggressive long positions in the Dollar Index, and remain vigilant for range-bound risks. Monitoring inflation data and policy changes will be key to navigating the market in the coming year.

Hashtag: #VTMarkets #CFDs #CFDsbrokers #USD #USDX

The issuer is solely responsible for the content of this announcement.

Business News

Prudential and Prudence Foundation Provide Free Mental Health Support to Vulnerable Communities

In partnership with Intellect, the programme will be launched in Malaysia and Vietnam to make mental healthcare more accessible for vulnerable or at-risk groups HONG KONG SAR - Media OutReach Newswir...

Hashtag.net.au - avatar Hashtag.net.au

Trend Micro Named a Leader in IDC MarketScape for CNAPP

HONG KONG SAR - Media OutReach Newswire - 2 July 2025 - Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cybersecurity leader, today announced it has been named as a Leader in the IDC Marke...

Hashtag.net.au - avatar Hashtag.net.au

Drug & Medical Device & Aesthetics, 肌顏態 was displayed at the CSD2025, The GeneQueens and 金因敷 launch was grandly held in Changsha

HONG KONG SAR - EQS Newswire - 2 July 2025 - On June 27, 2025, Uni-Bio Science Group Limited (the "Group")grandly held a new medical aesthetics product launch event in Changsha, releasing the high-end...

Hashtag.net.au - avatar Hashtag.net.au

Amazon Singapore Unveils a Week of Prime Day Deals and a Special Public Maze Event for Prime Day 2025

Prime members can access exclusive deals from brands such as Neutrogena, FOREO, Resto, Cricut, Pigeon, PicassoTiles and Coca-Cola from 8 – 14 July. Free Public event: Amazon Prime Day Maze at Suntec...

Hashtag.net.au - avatar Hashtag.net.au

Themed Forum of "Mountain Biodiversity and Our Life" to Kick off "Guizhou Example" Empowering Global Mountain Eco-treatment

GUIYANG, CHINA - Media OutReach Newswire - 2 July 2025 - Recently, Eco Forum Global Guyang 2025 announced at a press briefing that the themed forum "Mountain Biodiversity and Our Life" will be held i...

Hashtag.net.au - avatar Hashtag.net.au

Asia's First Porsche Design Tower Offers Revolutionary Luxury Living Experience to Bangkok's Vibrant Japanese Community

STUTTGART, GERMANY / TOKYO, JAPAN - Media OutReach Newswire - 24 June 2025 - Porsche Design Tower Bangkok emerges as a defining statement of excellence in luxury automotive-inspired living. As Asia's...

Hashtag.net.au - avatar Hashtag.net.au

Health & Wellness

Telehealth Could be the Catalyst for Better Heart Health in Australia

Hashtag.net.au - avatar Hashtag.net.au

Image by stockking on Freepik Heart disease is one of the leading causes of death in Australia despite decades of advancements in medicine and health education campaigns. More than 400 Australians ...

Disability Care in Melbourne: What Families Need to Know in 2025

Hashtag.net.au - avatar Hashtag.net.au

If you’re supporting a loved one with a disability in Melbourne, you’ll know how important it is to find the right care—and how overwhelming it can be to navigate the system. With the National Disab...

Online Medical Certificate Services: Essential Features to Look Out For

Hashtag.net.au - avatar Hashtag.net.au

"Discover top online medical certificate services! Essential features to look for to get trusted and efficient results." Choosing high-quality services is essential for ensuring reliable, efficient, ...