1. Market Overview
Markets remain stuck in a tight range this week, still weighed down by the lingering uncertainty around Trump’s trade war. The risk-off mood has kept price action muted, but there are early signs of progress as the U.S. and China have finally reopened dialogue — a step in the right direction that could ease tensions and unlock some relief for both equities and crypto.
At the same time, the conversation is shifting back to the Fed, as more voices on Wall Street question whether policymakers are once again "late to the party" on rate cuts. As Bank of America pointed out this week:
"The Fed cut 50bps in September when the stock market was at record highs and Atlanta Fed was forecasting +3% US GDP growth; now the Fed appears determined not to cut rates, even after a 20% market plunge, while the Atlanta Fed is forecasting -3% GDP growth."
This growing disconnect between economic reality and policy is adding another layer of tension — but also sets the stage for a potentially sharp market reaction once the Fed moves👀
