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Danske Bank Forecast
Projected window for the first pivotal rate reduction and USD shift.
Goolsbee Signal
Chicago Fed President hints at multiple cuts if 2% target is in sight.
Restrictive Peak
Fed maintains high rates to combat stubborn inflation figures.
The Federal Reserve's latest meeting minutes reveal a transition toward a 'balance of risks' as interest rates remain at a 22-year high. For the venture capital ecosystem, this shift signals a move away from aggressive tightening, though the timeline for potential rate cuts remains data-dependent and cautious.
Chicago Fed President Austan Goolsbee has signaled that 'several' interest rate cuts could be implemented in 2025 if inflation continues its descent toward the 2% target. While the outlook is optimistic, financial institutions like Danske Bank suggest a potential delay in the easing cycle until summer 2025.
Federal Reserve Governor Michael Barr has signaled skepticism regarding the ability of artificial intelligence to drive immediate interest rate cuts, creating a policy rift with Trump-nominee Kevin Warsh. While Warsh views AI as a deflationary force that justifies lower rates, Barr warns that the technology's impact on productivity remains too uncertain for near-term monetary shifts.