$BTC The Market Is Underpricing 2026 Rate Cuts đš
The CME FedWatch data is quietly flashing a signal most traders are ignoring. While consensus bets on just a few rate cuts in 2026, the probability curve tells a different story: deeper and more frequent cuts are creeping in.
Hereâs the twist â this isnât a panic move. Inflation is clearly cooling, and the labor market remains resilient. That puts the Fed in a rare sweet spot. Remember, the Fedâs dual mandate isnât to âstay hawkish forever,â itâs price stability and maximum employment. If prices keep easing while jobs hold up, cutting rates actually supports growth instead of threatening it.
Markets may be bracing for too little easing⊠while the macro setup is quietly inviting more.
Are traders about to be caught offside when the Fed turns faster than expected?
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