Fed successor’s interest rate cut expectations fall short? Bond investors' bets are shaking

2026-01-23 09:00:09

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【Crypto World】There is an interesting phenomenon in the bond market: investors have been betting for over half a year that Jerome Powell’s successor will push for more aggressive rate cuts. But now, this bet is being tested.

According to the latest report from Bloomberg, bond investors who were originally optimistic about a rate cut cycle are beginning to feel the pressure of reality. This reflects that market expectations for the Federal Reserve’s future policy direction may need to be adjusted—whether due to changes in economic data, inflation trends, or other macro factors, all are reshaping judgments about the interest rate path.

The impact on asset allocation strategies should not be underestimated. For traders focused on the macro environment, a shift in Federal Reserve policy often signals the beginning of risk asset re-pricing. This loosening in the bond market is likely to transmit to other asset classes in the coming weeks.

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RooftopReserver

· 12h ago

The expectation game in the bond market always goes like this: get it right and enjoy the gains, get it wrong and eat dirt. It now appears that the new term is not as dovish as before, and further market adjustments are inevitable. This wave of transmission to cryptocurrencies and stocks is only a matter of time.

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MysteryBoxAddict

· 12h ago

Bond investors' bets have missed, and this wave of market movement is indeed a bit intense. To put it simply, the market is re-pricing itself; the successor isn't as hawkish as Powell, but not as aggressive as everyone thought. The key still depends on inflation data—when the macro environment changes, the game rules must be restructured.

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SybilAttackVictim

· 12h ago

Bond investors' bets might be about to backfire; this wave of expectation gap is indeed quite significant.

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FlashLoanPhantom

· 12h ago

I guessed right for over half a year, and now it's time to unload. The recent decline in bonds clearly shows the market is re-pricing, and cutting interest rates isn't that easy. Next, risk assets will have to play the rotation game.

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