FED’s December Projections Have Exposed a New Market Reality.
The numbers out of today’s FOMC release should freeze every investor in their tracks.
Unemployment is now projected to climb to 4.5% in 2025.
Seven Fed officials penciled in zero rate cuts for 2026.
And the Fed’s median rate outlook for 2028 still sits at 3.1%, miles above the “easy money” markets were betting on.
This is not dovish. This is not easing.
This is the Fed quietly admitting inflation is not dead and won’t be for years.
Bond markets reacted instantly. Treasury yields spiked.
Rate sensitive sectors cracked.
And futures whipsawed as traders realized the Fed’s path is far tighter than the market narrative of the last eight weeks.
The message is brutal:
If the Fed is right, growth slows.
If the market is right, inflation stays sticky.
Either path squeezes valuations that have been priced for perfection.
But here’s the part no one wants to say:
Everything now hinges on Jerome Powell’s speech.
His tone decides whether markets rip to new highs or unwind violently into year-end.
One sentence from Powell can flip the entire trajectory of Q4.
And right now, nobody knows which Powell is walking up to that podium.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs.
🎉Cash Boost Account Now Supports 35,000+ Stocks & ETFs – Greater Flexibility Now
Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Comments