Financial Giant ING Expects Fed to Cut Rates From Second Quarter Onwards
Financial giant ING has predicted that the Federal Reserve will start cutting interest rates in the second quarter of next year. “We are currently forecasting 150bp of rate cuts in 2024 with a further 100bp in early 2025,” ING’s chief international economist detailed, noting that U.S. economic data confirmed that there’s “no need for any further Fed policy tightening.”
ING’s Fed Rate Cut Prediction
Global financial services firm ING’s chief international economist, James Knightley, published an article last week outlining why he expects the Federal Reserve to start cutting interest rates next year.
Citing U.S. data showing modest growth, cooling inflation, and a cooling labor market, the economist emphasized that it’s “exactly what the Fed wants to see.” He described:
This should confirm no need for any further Fed policy tightening … We expect rate cuts from the Fed from the second quarter onwards.
“We are currently forecasting 150bp of rate cuts in 2024 with a further 100bp in early 2025,” he noted.
The ING economist highlighted that initial jobless claims rose to 218k last week, emphasizing that “the trend is certainly towards higher continuing claims while initial claims remain low.” He added: “Essentially, the message is that firms are reluctant to fire workers, but they are less inclined to hire new workers. i.e. more evidence of a cooling, but not collapsing, labor market.”
Knightley then explained that inflation pressures are “moderating more broadly,” citing the October personal income and spending report showing both incomes and the Core PCE deflator rising 0.2% month-on-month. This means “the annual rate of core inflation slowed to 3.5% from 3.7%, as expected,” he stated.
The economist described spending as holding up, but cautioned that the outlook is “deteriorating.” Noting that “Credit card delinquencies are on the rise while student loan repayments are only adding to the financial pressure on millions of households,” he warned:
The weakness in real household disposable incomes … remains a key concern for growth in the early part of 2024.
Do you agree with the forecast by ING’s chief international economist? Let us know in the comments section below.
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XRP Price Prediction – Key Upside Break Could Trigger Fresh Surge
XRP price is eyeing a key upside break above the $0.650 resistance. The price could rally toward $0.70 if it clears the $0.650 resistance.
- XRP is slowly moving higher above the $0.612 level.
- The price is now trading above $0.615 and the 100 simple moving average (4 hours).
- There was a break above a major declining channel with resistance near $0.618 on the 4-hour chart of the XRP/USD pair (data source from Kraken).
- The pair start a fresh rally if it clears the $0.645 and $0.650 resistance levels.
XRP Price Aims Higher
In the past few days, XRP formed a base above the $0.5880 pivot level. The price started a decent increase above the $0.600 resistance but failed to rally like Bitcoin and Ethereum.
There was a move above the 23.6% Fib retracement level of the main decline from the $0.720 swing high to the $0.5720 swing low. Besides, there was a break above a major declining channel with resistance near $0.618 on the 4-hour chart of the XRP/USD pair.
The price is now trading above $0.615 and the 100 simple moving average (4 hours). On the upside, immediate resistance is near the $0.625 level. The first major resistance is near the $0.645 zone or the 50% Fib retracement level of the main decline from the $0.720 swing high to the $0.5720 swing low.
Source: XRPUSD on TradingView.com
The main resistance sits at $0.650. A close above the $0.650 resistance zone could spark a steady increase. The next key resistance is near $0.685. If the bulls remain in action above the $0.658 resistance level, there could be a rally toward the $0.700 resistance. Any more gains might send XRP toward the $0.720 resistance.
Another Decline?
If XRP fails to clear the $0.650 resistance zone, it could start a fresh decline. Initial support on the downside is near the $0.615 zone and the 100 simple moving average (4 hours).
The next major support is at $0.600. If there is a downside break and a close below the $0.600 level, XRP price might accelerate lower. In the stated case, the price could retest the $0.572 support zone.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now near the 50 level.
Major Support Levels – $0.600, $0.588, and $0.572.
Major Resistance Levels – $0.645, $0.650, and $0.700.
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