Krutika Adani
The first and the previously presumed possibility is that the US Federal Reserve would not cut interest rates in H1 of 2025.
This option has the highest possibility due to a fall in industrial production in the US amid a massive trade war.
As the Fed is the responsible agency to maintain growth rate in the USA, it might prioritize it over inflation, cutting interest rates.
The worst scenario would be if Fed’s Dec 2024 prediction comes true of little to no chance of interest rate cuts in 2025.