The Fed Says One Rate Cut – Markets Are Betting on Two

Last Wednesday, the Federal Reserve announced its third interest rate cut of 2025. The market cheered on the news, but the biggest news was how divided the Fed members were on the decision.

Additionally, the latest “dot plot” showed Fed members expect only one more rate cut in 2026. However, the futures market believes that two rate cuts are on the horizon. So, what’s going on here? Does the market know something that the Fed doesn’t?

That’s exactly what we talked about in Navellier Market Buzz this week. We also talked about Fed Chair Jerome Powell’s comments on the economic data, the shrinking U.S. trade deficit, my thoughts on Elon Musk and Jeff Bezos wanting to push AI data centers into space and much more.

Click the image below to watch now.

If you like what you saw today and want to see more, click here to subscribe to my YouTube channel.

Plus, the grades in Stock Grader (subscription required) have been updated this week! Click here to plug in your own stocks and see how they rate.

What To Look Forward To Next

While the divide between Fed members caused some uncertainty, the important thing to remember is that this rate cut sets the table for a strong year-end rally in the market.

But what’s nothing compared to what’s next, folks.

Beginning as soon as January 2, we could see a profound shift in the American economy begin to take shape.

This “American Dream 2.0” is based on an $11.3 trillion economic shift driven by domestic onshoring, AI infrastructure and a government-backed industrial reboot.

The biggest winners from this aren’t the names you’d expect. They will actually be small, overlooked U.S. suppliers, the ones that are the driving force of AI, automation, nuclear power and semiconductor buildouts.

To make sure you’re aware of what’s to come, I recently joined Luke Lango and Eric Fry for a special briefing.

We identified nine companies that we believe are on the cusp of receiving billions in this new transformation, and I want you to be able to get your hands on them before the video is taken down at midnight tonight.

Click here now to see our replay of the American Dream 2.0 Summit now.

Sincerely,

An image of a cursive signature in black text.

Louis Navellier

Editor, Market 360


Article printed from InvestorPlace Media, https://investorplace.com/market360/2025/12/the-fed-says-one-rate-cut-markets-are-betting-on-two/.

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