The post Federal Reserve Forecasts Limited Rate Cuts As Inflation Rises appeared on BitcoinEthereumNews.com. Key Points: US Federal Reserve expected to cut rates modestly despite rising inflation concerns. Inflation pressures from tariffs to impact Treasury yields. 10-year US Treasury yield projected to reach 4.60% in six months. Deutsche Zentral-Genossenschaftsbank predicts the Federal Reserve will trim interest rates by 25 basis points this December, as detailed in an analyst report by Christian Lenk on November 18. Such rate cuts, amid rising inflation due to tariffs, are expected to increase 10-year US Treasury bond yields, impacting risk assets, including cryptocurrencies like Bitcoin and Ethereum. Fed’s Rate Strategy Amid Inflation Challenges Christian Lenk of Deutsche Zentral-Genossenschaftsbank forecasts the Federal Reserve will cut interest rates by 25 basis points come December. These projections anticipate further reductions in March and June 2025, with a focus on cautious actions amidst rising inflation concerns. Rising tariffs and a significant government deficit are expected to fuel US inflation, influencing these decisions. This scenario leads to expectations of 10-year US Treasury yields increasing to 4.50% within the next three months and 4.60% over six months. Market participants are weighing these potential movements’ impacts on financial markets and long-term yields. Such predicted interest rate adjustments and associated yield increases may provoke cautious sentiments and strategic shifts by investors in both traditional and cryptocurrency markets. Insights from DZ Bank underline broader market apprehension over inflation pressure and its dampening effect on monetary easing. Chief Economist Michael Holstein and Christoph Kutt of DZ Bank note that US monetary policy is likely to remain restrictive, impacting growth prospects. Michael Holstein commented, “However, the growth could be short-lived. Trade tariffs usually lead to retaliatory action. This will drive up inflation and unsettle consumers.” Historically, rate changes can lead to volatility within financial markets, including cryptocurrencies, experiencing direct effects from monetary shifts. While asset reallocation might occur from risk-on… The post Federal Reserve Forecasts Limited Rate Cuts As Inflation Rises appeared on BitcoinEthereumNews.com. Key Points: US Federal Reserve expected to cut rates modestly despite rising inflation concerns. Inflation pressures from tariffs to impact Treasury yields. 10-year US Treasury yield projected to reach 4.60% in six months. Deutsche Zentral-Genossenschaftsbank predicts the Federal Reserve will trim interest rates by 25 basis points this December, as detailed in an analyst report by Christian Lenk on November 18. Such rate cuts, amid rising inflation due to tariffs, are expected to increase 10-year US Treasury bond yields, impacting risk assets, including cryptocurrencies like Bitcoin and Ethereum. Fed’s Rate Strategy Amid Inflation Challenges Christian Lenk of Deutsche Zentral-Genossenschaftsbank forecasts the Federal Reserve will cut interest rates by 25 basis points come December. These projections anticipate further reductions in March and June 2025, with a focus on cautious actions amidst rising inflation concerns. Rising tariffs and a significant government deficit are expected to fuel US inflation, influencing these decisions. This scenario leads to expectations of 10-year US Treasury yields increasing to 4.50% within the next three months and 4.60% over six months. Market participants are weighing these potential movements’ impacts on financial markets and long-term yields. Such predicted interest rate adjustments and associated yield increases may provoke cautious sentiments and strategic shifts by investors in both traditional and cryptocurrency markets. Insights from DZ Bank underline broader market apprehension over inflation pressure and its dampening effect on monetary easing. Chief Economist Michael Holstein and Christoph Kutt of DZ Bank note that US monetary policy is likely to remain restrictive, impacting growth prospects. Michael Holstein commented, “However, the growth could be short-lived. Trade tariffs usually lead to retaliatory action. This will drive up inflation and unsettle consumers.” Historically, rate changes can lead to volatility within financial markets, including cryptocurrencies, experiencing direct effects from monetary shifts. While asset reallocation might occur from risk-on…