FED HAS “RUNWAY” FOR RATE CUTS - LYN ALDEN
Economist Lyn Alden says the Fed has room to cut rates, and its expected balance sheet expansion won’t be particularly inflationary over the next 1-2 years.
She calls the current phase a “gradual print” era, with ~$20-$25B added per month to keep pace with growth.
Inflation may slow to ~2.5%, while core CPI stays near 3.2%.
Cuts could come mid-2026, with terminal rates around 3.00-3.25% through 2027.
In this steady liquidity environment, Alden favors high-quality scarce assets like #Crypto and #BTC as stores of value.