@defiguruf

Summary In the September 2025 SEP, the Fed projects: U.S. GDP growth: only 1.6% for this year Unemployment: around 4.5% PCE inflation: elevated at 3%, gradually trending toward 2% by 2028 Fed funds rate: expected to fall from 3.6% (end of 2025) to around 3.1% in 2027 → The Fed signals at least two more rate cuts in 2025. The Good News The Fed has officially begun an easing cycle, raising expectations that liquidity will slowly become “cheaper.” But with inflation still elevated, the pace of rate cuts cannot be aggressive. This creates the possibility of short-term “sell the news” reactions immediately after announcements. Impact on Assets Gold: Clear beneficiary. Lower interest rates reduce the opportunity cost of holding gold, while concerns about slower growth increase safe-haven demand. Short-term volatility is possible, but the multi-month trend leans upward.

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