🤑 Fed’s Big Chop: Hassett Spills the Tea on Next Week’s Rate Cut! 🤑

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Oh, Kevin Hassett. The man who makes economic forecasts sound like a soap opera plot twist. In a recent Fox News interview, he dropped a bombshell that has the market clutching its pearls: the Federal Reserve is “likely” to cut interest rates next week. 🍿 And who better to deliver this news than the guy who’s basically auditioning for the role of Fed Chair? His words carry the weight of a crystal chandelier-fragile, expensive, and everyone’s watching to see if it crashes.

Hassett, ever the optimist, expects a 25-basis-point cut, claiming the Fed governors are “leaning in” like they’re at a middle school dance. 🕺 “We’re hoping to get to a much lower rate,” he said, because who doesn’t love a good bargain? Meanwhile, the rest of us are here wondering if our savings accounts will ever see interest again. 🙃

“They now seem much more like they’re leaning in the direction of a rate cut,” he said, because nothing says commitment like a maybe.

Economists, Markets, and FedWatch: The Financial Trifecta of “Probably”

Next week’s meeting is the last hurrah of 2025, and the rate-cut hype is hotter than a Black Friday sale. 🎉

  • A Reuters poll shows 82% of economists expect a 25-bps cut. Because when in doubt, follow the crowd.
  • FedWatch now places the odds at 87.2%. Vegas, eat your heart out.
  • Senior officials like John Williams, Michelle Bowman, Christopher Waller, and Stephen Miran are all aboard the easing train. 🚂 Choo choo!

But wait! Not everyone’s sipping the Kool-Aid. At least five FOMC voting members are playing the role of party poopers, publicly opposing another cut. And Jerome Powell? He’s over there warning about inflation like it’s the boogeyman under the bed. 👻 With inflation stuck above 2% and a 43-day government shutdown throwing data into chaos, this meeting is less “decision” and more “coin toss.”

A Cut With Global Ripple Effects (Or Just a Big Splash?)

If the Fed does pull the trigger in December, it’s not just Uncle Sam’s wallet that’ll feel it. Asian currencies-the rupee, won, rupiah, and peso-have been sweating bullets for weeks. 💦 Strategists say a Fed easing could be their lifeline, and some are even whispering it’s “time to go long Asian currencies.” Because nothing says confidence like betting on the yuan. 🇨🇳

What to Watch Next (Spoiler: It’s Drama)

All eyes are glued to next week’s FOMC decision, because a 25-bps cut isn’t just a number-it’s a statement. And with Hassett poised to be Trump’s Fed Chair pick, the stakes are higher than a pair of platform heels. 👠 Will the Fed deliver? Will the markets rejoice or riot? Tune in next week for the financial cliffhanger of the year. 🍿

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2025-12-05 13:08