🚹 U.S. Interest Rates Enter a Critical Window — Markets Must Prepare for Multiple Outcomes

Fresh analysis from First Abu Dhabi Bank (FAB) warns that the next few months will be decisive for the U.S. interest-rate outlook — and markets may be underestimating how tight this window actually is.

FAB expects the Fed to deliver no more than 50 bps of additional cuts in 2026, signalling a slower, more cautious easing cycle than many traders are pricing in.

According to FAB, the future of U.S. rates now depends on three key forces:

Inflation’s next direction — whether disinflation holds or starts reversing

Labor market strength — wage growth, job creation, and overall resilience

Domestic & global policy risks — any shock could change the Fed’s tolerance level

👉 In simple terms:

This isn’t a smooth descent into lower rates — it’s a narrow path where every data point can shift expectations.

📊 What It Means for Crypto

Volatility remains the default environment.

Expect sharp reactions to:

CPI

NFP

FOMC speeches & minutes

As traders try to decode the real pace of easing, assets like BTC, ETH, and SOL will continue moving aggressively with macro signals.

FAB’s message is clear:

Stay ready for multiple scenarios, not a single narrative.

#crypto2025 #Market_Update #Write2Earn #USDollarCrisis #USInterestRates $BTC

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