Fed Rate Cuts Could Weaken Dollar and Spur Investor Risk Appetite
• The Fed is expected to cut rates by 100 basis points in 2024, becoming the most dovish major central bank • Rate cuts would likely weaken the dollar and incentivize risk-taking in crypto and traditional markets • The Fed is seen cutting rates more than other advanced nation central banks next year • A weaker dollar often benefits bitcoin and other risk assets by easing financial conditions globally • If inflation rebounds, expectations for Fed easing could lead to disappointment and dollar strength