Elizabeth Warren's Call for Rate Cuts and Market Implications

Elizabeth Warren's call for aggressive rate cuts signals potential economic weakness and could impact market stability.

### Upcoming Rate Cuts and Market Implications: A Deep Dive
* 📈 Elizabeth Warren is advocating for immediate rate cuts, with a significant focus on a **potential 75 basis points reduction** due to recession fears, prompting discussions in the market.
* 🔔 This week is poised to be **crucial for crypto**, with various events, including the FOMC meeting and interviews with key figures, potentially **influencing market dynamics**.
* 💵 The S&P 500 recently added **$1.8 trillion in market cap**, marking its **best week of 2024**, while Bitcoin struggles around the **$60k mark**, reflecting contrasting trends in traditional and digital assets.
* 📊 Predictions indicate a **63% chance of a 50 basis point rate cut**, a notable shift from previous expectations, driven by **changing economic indicators and political pressures**.
* 🌍 Global implications are evident as central banks in Europe and Asia also consider **aggressive rate cuts**, which could further impact the **dollar and digital asset markets**.
* ⚖ As the market anticipates these developments, analysts express concerns that a **50 basis point cut could signal underlying economic weaknesses**, potentially leading to a **market correction**.
* 💬 The narrative surrounding these rate cuts is critical, with discussions about how they will be **communicated to the public** and their potential impact on **small-cap stocks and risk assets**.
* 🔍 The upcoming decisions will likely **shape market sentiment** as investors navigate the complexities of **inflation data and economic projections**, setting the stage for **future investment strategies**.

[Music] [Music] [Music] Elizabeth Warren is all over the place now. She's asking for more rate cuts, and guess what? We've got a little bit of a Poly Market bet on this, so we'll break it all down for you guys. Don't miss it today. It's going to be a good one. My name is Paul Barr. Welcome back in Tech Path. This is our live show again. Thank you for stopping in. If you're here live, make sure and smash the like button right now. Just go ahead and hit that. It does help because it will start to let other people know that this is going on. If you haven't hit that little bell, you can do that as well so you get notified when we do these live streams. I do want to thank our sponsor today, and that's Coinbase. Go over if you're brand new to crypto and set up your own Coinbase account. You can do that just by visiting coinbase.com. The future of money is here. It is one of the

best and most trusted places out there for people and businesses to buy and sell a couple of things. Here is where you can go in there onto Coinbase, buy your first tokens. You can go into the Coinbase wallet, go into self-custody. It's a great ecosystem. Check it out, use our link, it's going to give you 200 bucks in crypto to get started. So, let's go over to a couple of points here I want to get into today, and one of those is really this week. So, this week I believe is going to be one of the biggest weeks in crypto for a variety of reasons, and you guys will understand. We're going to be covering a lot this week. We'll have the rate cuts going on, we'll have a handful of interviews on that. We also have a congressman coming on this week. I won't tell you who that is just yet, but we'll most likely get some regulatory directions. Then we have Breakpoint with Solana happening. Obviously, the FOMC meeting, which we will be live streaming.

on Wednesday as well, but right now, Fed rate C incoming S&P just shy, uh, 1% shy of its all-time high Tuesday. We'll see the retail sales. I think most likely we, this will be a big number, uh, that could be a corrective measure in the US economy. Wednesday, we'll get the decision, 63% chance of a 50 basis points, uh, rate cut. That's a pretty big jump. And then Thursday, we'll get the Bank of England and also Bank of Japan on their rate decisions, which could be pretty aggressive. So, be on the lookout for that. On more of a global front, the S&P 500 also added 1.8 trillion in market cap last week, posting its best week of 2024. Crazy numbers right now. This comes just days after the index added nearly five trillion in market cap between August 5th and the 30th. So, just this continued growth in a lot of these Topline Securities. And it's kind of interesting because we are still seeing Bitcoin struggle around that 60k mark. We

have not seen a lot of push Bitcoin, of course, trading down for many reasons. I think we'll get into some of those today. Other things that are playing into this, of course, is going to be this rate cut decision. Right now, the prediction markets are pricing in. This is actually behind times. I'll show you the full price, but the point is that the odds of a 50 basis points rate cut have gone from where it was about 2% to guess where it is right now, holding it at 53. So, a big jump up just over the last couple of days, obviously because of a few key things that happened, occurred. And one of the key things was this right here, Elizabeth Warren calling on Powell to immediately cut by 75 basis points due to a risk of recession. So, here's my question: What is it that Congress knows or what is it that the Fed knows that they're concerned that we've all of a sudden gone from a 25 basis point or even many people thought maybe a no cut?

In September to a 25, and now we're looking at 50, and possibly pushing into a 75. Is there something truly broken on the data that is starting to show up? That is my question, and that could cause a huge correction into the overall stock market, which could mean risk could get back into the Fair Trades. Here's Anthony Pompliano talking about this, and her letter to Jerome Powell becoming obvious that cheap capital is going to flood the market regardless of why and how it happens. Anytime we see cheap capital start to move their way in, sometimes that's good for the economy, but it's very bad for the dollar and good for digital assets. I think in general, the bigger factor here is where we see the dollar and how it plays out on the global stage, which gets around things like what's happening within the BRICS, obviously within a lot of these central banks that are already cutting rates right now, both in Europe and in Asia. I think we're going to continue to see a pretty heavy rate cut.

cycle in Europe and in Asia, which will have some effect on a global macro. Here, of course, is the odds of 50 basis points now are higher than the 25 basis after Warren's demand for an emergency 75 basis rate cut. I don't know if this is still playing in from a political side of things where this might be a narrative for the Democrats. It is possible there could be some political scenarios. I believe it's data that's coming in, whether it's retail sales, job numbers, or the potential of what they're seeing into the cycle going into the fourth quarter for retail. And if you follow car sales, you follow some of the bigger scenarios that are playing out in the American economy, people will start to say, Yeah, we're still slowing at a much, much more accelerated rate. I'll show you the inflation, true inflation data here in a second. By the way, like I said, hit the like button. We do these live streams. The next one, we're probably

going to do is on Wednesday with the FOMC. Let me know if you like those live streams, by the way. Just drop some comments down below and make sure to share this channel with some of the friends that you guys might have out there. And I'm going to start losing my voice, so I'm going to go to a clip real quick. Let's go to this clip, which is going to get into, is 25 basis points enough? We have seen Fed futures at least move up a little bit on the possibility of a 50 basis point cut. What do you think's behind that thinking? 25 is not enough. Maybe there is a little weakness that we're seeing. Might as well get started a little more quickly. I've heard a number of people say we're going to, you know, they're going to have to cut, you know, several times. Why not front-load it and get started earlier? There is also, though, something that worries me a little bit in that narrative, the notion that maybe the

economy is a little weaker than it appears, and this is an insurance policy. Um, you last time we talked, there was some discussion that you and I had about, well, GE, is the economy actually weaker than it appears. I fear that if they move 50 basis points, the notion that they know something that we don't know, as they say, I.E., the market, the economy is weaker than we think, will start to take hold. And I think that's, you know, not an accurate narrative. I don't know. I think it might be an accurate narrative. I think there is data that is going to give us some new indicators going into the end of the year. Um, this was another clip that was talking about the importance of the narrative and kind of how this cut is going to be, you know, presented to the market. Take a look. All right, so you say it's all about the messaging. So if it's about the messaging, does 25, 50, does that matter, or is it really what J. Powell says?

later for me. I think it's the 25 or 50. I think you could make a perfectly neat case for either one. The 50 could kind of be like a catch-up case, but the messaging that the summary of economic projections and the press conference, I think, will matter a lot more. It's so interesting to me to see the waffling on Wall Street with the analyst. I mean, it's crazy because the narrative in the past several weeks has all been 25, and then all of a sudden, just out of the blue, we're seeing a 50 and a push for 75 from Senator Warren. That just, what, does this make sense to you guys? Does this make sense? Here is Bloomberg talking about how this might bring in a small-cap revision because this could change things up because it could apply to more risk assets. Guess what that might be? That could be altcoins. That's a risk asset. Take a look, and we were watching the small caps just surge on Friday as

the renewed optimism about the 50 basis point cut came up as well, and look, I think small caps have a lot going for them, but the reality is that valuations are full, um, and positioning is also full. If you go back a few months ago, they looked under-owned, they looked cheap, we're just not there anymore, and now we've got a lot of Fed optimism baked in. So, I do think in the short term at least, if we're just thinking about the week ahead, I do worry a bit that if we get the 25 rather than the 50, which propelled small caps to these great heights on Friday, that there could be a bit of a reversion in the small caps. So, I think that small caps really need the needle to be threaded, and what I mean by that is if you go back and look at past cutting cycles, small caps do really, really well and embark on a longer-term outperformance cycle. If you get a recession, if you break the economy, it's small cap 101 to say you sell them.

On the way into a recession, you buy them on the way out, and you tend to see that pivot midway through. And if we're just, you know, kind of, I guess I think it comes down, Lisa, what do you mean by soft landing? A soft landing that's looking at like 1 and a 12% type GDP growth, maybe even two. I don't think that quite cuts it for small cap. I think you need something more like two and a half to 3% or better. Okay, so there are some narratives that are starting to play out here, and the real interesting thing to me is how the interest rate is going to be transmitted down to a lot of people who have parked their funds into money market accounts. And just think about that for a second because most people, I won't say you guys are, but a lot of people are lazy when they get into these investments. Once they start earning interest, you have to remember a lot of that money was not earning interest when we had these low interest environments.

and then all of a sudden, we started to see this clip up toward money market and a lot of movement out of the regional Banks. You guys remember that, right? Last year, a lot of movement out of regional Banks and into the big six. And that, I think, could start to play into this because this means a lot of money from guys like JP Morgan, Jamie Diamond, etc. Guess who is in cahoots there with Jamie Diamond? You've got Elizabeth Warren playing into this. So, a lot of narratives playing out right now. We're going to continue to watch this because I think the rate cut is going to be a key thing for how this Market plays out, especially in Q4. I want to get over to the true inflation real quick. By the way, if you're not in our Diamond circle, make sure and get in. This is where you guys can go. We just go to Paul B Network. We actually do a market update over there that is exclusive for our members only. I do like a couple

times a week. It only goes out on email. Make sure and sign up for that. We always leave a link down below. If you take a look at what's happening here with true inflation, this is a good example right here. I mean, look at this. We have not seen these kinds of numbers in a very long time. That's the one year right now, and this is accelerating. Look at the acceleration since June, which we were sitting at a 268, and it had started edging up. And this is true inflation, not traditional inflation, but true inflation. 268, almost three since June. And then this just teared down over the last four months. So this gets me back into the point of, has the economy slowed so much that they're going to need to create a catalyst to move it into the next layer of growth, which would affect GDP, which is what that last clip was talking about. And I think those are the things that we have to consider because this will have a chilling effect potentially on the stock market. Fear and greed speaking.

of that fear and greed right now about 39. Very, I would say, very lukewarm at best. However, we have seen some spikes both with it and in and around it, but it definitely is not what we saw last month, which was extreme fear at 25. So, I don't know if you guys follow in on that. We'll get to some questions today. I see you guys have a bunch here in the comments, so we'll try to get to as many of those as we can. I'll take a look at the charts as well. I think there was some people talking about some tokens. We'll go into that. I want to get over to this article right here. Short-term Panic for Bitcoin. This is coming either on the upcoming Fed rate cut or there are some other probabilities here. But one of the notes that we in this, let me kind of zoom in on this for you guys. According to the expert, when Panic Peaks, chaos will provide investors a chance to buy more Bitcoin. But for now, it's holding.

Longs and spots. He also further warned that investors to watch out for scam Wix. These are, you know, how they work, these big UPS or these big Downs, noting crypto asset might experience some pretty big manipulations during this period. And they're talking that they further about that. They advise investors to worry more about surviving the incoming short-term Panic rather than predicting its next move. So how are you holding your position, whether it's in crypto or in some other diversified assets? Let me know, drop some comments down below, especially if you're catching this after the live stream. How are you guys playing this? Because we could see a very explosive Market one way or the other depending on how this rate cut is perceived by the market. Further things that, and this is where perception is everything, look at this. Bitcoin, of course, is up with Trump's close call in Florida, and this influenced bitcoin's price, we think. And of course, this was because of the potential where the

almost had another assassination attempt, but the incident comes two months after the previous Pennsylvania rout. They don't really talk about that. It's interesting they don't use the term. The incident has set up ripples through the prediction markets, and the cryptocurrency space has adjusted down. Obviously, we saw Bitcoin, but I think bitcoin's move is just more traditional Bitcoin moves than what we're seeing here. So, other things in here, if you look at the after the first assassination, this coming over from decit, but point they were making is after the first assassination attempt, Sana's meme coin, TRP, some of the Trump memes absolutely skyrocketed. And versus in contrast now, it's down over the past little bit here with this situation. Realistically, though, the event should have been a catalyst for an influx of buy-side volume, yet no one was interested. So, I don't know, that's the other thing that I think plays into this. Has this election season just started to wear on investors, and they really don't care who wins? Is that where we are now?

In crypto, if that is the case and you don't care who wins, hit a comment down below, or if you're still on one side or the other, let me know who that is, drop it in the comments below. A couple of other points I want to hit on right here, and that is this right here. This is Jeremy Allaire. This is the CEO of Circle, most likely going to be a public company here in not too long, and they're thrilled to be collaborating with Sony's blockchain efforts, making USDC a central part of what we believe will be a consumer-scale ecosystem. More, this is talking about all the efforts in Japan to continue to their efforts around Web 3 and the innovation of blockchain companies and innovation that is happening in Asia and guess what, not happening here in the US. So again, we continue to lose around all these scenarios while the rest of the world seems to be doing just fine on all of this. Let's get into the charts real

quick. I want to take a look at, uh, by the way, did you guys see that SOI video we did last week? It was on the SOI versus Lana and not bad movement on SOI over that period of time, uh, still showing up on our MSI indicator right now, showing positive sentiment going forward. Let me go over and I'm going to drop that while we get to some questions. Let's go to the poll real quick and then we'll jump into, uh, Bitcoin real quick. What will the First Rate cut be, 25, 50, or Elizabeth? So everybody's still pushing on the 25. Okay, so you like the 25 as a whole. So nobody interesting. So right now, Poly Market is wrong according to our audience. So we'll see how that plays out going forward, uh, let's get into a few questions here. David Crockett says, When interest rates get low, ETH will dominate such, uh, so much money currently in Stables earnings interest. Yes, that is true, and we could see some more yield, uh, increase with that if we see, and this is something we talked

about in the crypto pit today is that money movement. Think the banks benefit from this, and you think about the directive from Senator Warren here. I think the banks benefit from this long-term because, as I said, a lot of people who are in those money markets are just happy to be earning anything in many cases because they're usually, they're not risk investors, and they definitely don't look at crypto completely. But if we start to see pressure on downward trend in these interest rates, does it get some of those more savvy investors to say, You know what, I'm going to take my 5% and decide to go into the yield markets with that? That would immediately affect what's happening in crypto. All right, James says, Paul, how are you? What's your take on drift protocol? Interesting you asked that. I bought some of the drift protocol not too long ago. I've been kind of going up and down on it, so I'm back and forth. We should probably do more analysis on it.

but I do own it. I will say that right now. Um, whether I sell it is the question because it's just a trade for me. I'm not really, you know, it's not one of those passion projects. Uh, what's your take on the crcoin? We don't really do much with, uh, with that token. A lot of these exchange tokens, we just don't. We don't play with. All roads lead to Boomers. Um, well, I think you're talking about, I hope you're not referencing me because I'm in Gen X, but I think you're talking about the reference in how Boomers invest, and you're right. A lot of that money and liquid that is either sitting on the sidelines right now trying to figure out where they go or looking for an exit off of these high-security, uh, SNP, or are they looking for an alternative in diversification, possibly going into some other markets. You've got gold in the play. You've got real estate possibly coming back in. There's a lot going in there. Warren just

uh, trying to pump her backs. Maybe I doubt it. Uh, we could see no cuts or even a rise. I don't think so. I think we're going to see a cut for sure. Hard landing if it's a 75. If it's a 75, I agree. That means that something is wrong, and uh, they know it. That would, I think, that would give a very negative uh, indicator to the markets. Uh, Senator Warren in trouble of losing her seat to John Deon. Uh, this is why she's pushing for a 75. No, I don't think that has anything to do with it. This is more of a position to help the bankers. I think we'll see a 150 cuts uh, in January. I'm thinking that's what you're saying. Make XRP move again. Um, we'll see if Warren is calling for it. Absolutely the wrong thing to do. I would agree with you. I think it is the wrong thing to do. I think 75 is just too aggressive based on where we are, right?

now and the fact that we don't necessarily have a ton of analysis of where this trailing data is coming in, and that's going to be jobs, retail sales, and businesses. Now granted, if you lower rates, it does give capital to businesses. Low access to capital is good for businesses. It does stimulate the economy and often jobs, so that can be a factor that I would say is still in the place. If you look at Bitcoin right now, this is the, and I'm using two indicators right now, one is our MSI indicator, and the other is the Lux algo strength indicators. And right now, still showing a downtrend on Bitcoin, so we could see Bitcoin continue to slide a little bit further. If you take a look at Solana, because Solana courses this week, we will be doing coverage on breakpoint. Solana also right now still on the slide. We may see it come back down into the 120s in that range. Right now, it's in a big order block right now with a lot of negative sentiment, and right now both trailing

and also these signals um not coming in very positively on Salana, so maybe this early week is still waiting for Wednesday as a catalyst going forward. A couple of other questions coming in. Seth says, Do we pump or dump on Wednesday? is the million-dollar question. Well, it's all going to depend on what we get. If we hit the quarter, the market will be settled. If we get a 50, that could change perspectives of where the market goes. Could be people going off the sideline for a short period of time and possibly reassessing some risk assets, or we could see a complete divestiture out of the uh S&P. Uh, that would be way too big. Yeah, that would signal panic. I agree with you, Dedra. Uh, that would be signaling panic if we get to that 75. And what's amazing to me is that these are smart people. You would think they're congressmen, senators, and yet they're asking for these kinds of things. And I mean, economics 101 is going to give you a cycle in which you're being able to deal.

with this unless you're seeing data that you're not necessarily letting out into the public. That's the other question that I always wonder: is there nefarious, you know, actions happening behind the scenes? I don't know. These are the kind of things, but listen, Wednesday we will be there, and we will be here for you guys. We will be doing a live stream for you. We'll look at Mr. Pal's comments after. We'll know Wednesday morning what the rate cut is going to be, if there is in fact a quarter or 50. And we'll also get a framework of where Pal is going to be going into the fall. And I think that's very important because that's when we're going to start to see the real data show up. And I think that's what sets up 2025 in a good way, maybe for crypto, of how this is going to play out for us in the rest of this bull run. If you guys are not part of the Diamond Circle, as I said earlier, get in. We always leave a link down below. It's

very easy to catch, and of course, follow me on X. It's just Paul Baron. We'll catch you next time right here on Tech Path. [Music]

Elizabeth Warren Demands Explosive Rate Cut ️‍🔥 Crypto Market Update LIVE🔴

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Elizabeth Warren's Call for Rate Cuts and Its Impact

Elizabeth Warren is advocating for immediate rate cuts, causing a significant shift in market predictions.

This week is crucial for crypto, with key events like the FOMC meeting and regulatory interviews.

The S&P 500 has seen substantial growth, while Bitcoin struggles to break the $60k mark, raising questions about the underlying concerns driving the Fed's rate cut decisions.

Concerns Over Data and Market Corrections

The data is showing a potential shift from a 25 to a 50, and possibly a 75 basis point rate cut, raising concerns about a possible correction in the stock market.

Cheap capital is expected to flood the market, which could be detrimental to the dollar but beneficial for digital assets.

The global impact of rate cuts in Europe and Asia, along with slowing economic indicators in the US, suggests a potentially accelerated economic slowdown.

The Impact of Federal Reserve Rate Cuts on the Economy and Small Caps

The economy may be weaker than it appears, raising concerns about the Federal Reserve's potential 50 basis point rate cut.

The messaging from the Fed, including the summary of economic projections and the press conference, is expected to be crucial in shaping market perceptions.

Small-cap stocks have surged in response to renewed optimism about the rate cut, but their valuations and positioning are now full, leading to concerns about a potential reversion if the cut is smaller than expected.

The speaker discusses the timing of investments in relation to a recession, emphasizing the need for stronger GDP growth for small caps.

They highlight the movement of funds from regional banks to larger institutions and the potential impact of interest rate cuts on the market.

The speaker also addresses the acceleration of true inflation and its potential effect on the economy and the stock market.

Current Market Sentiment and Bitcoin's Short-Term Outlook

The fear and greed index is currently at 39, indicating a lukewarm market sentiment, an improvement from last month's extreme fear at 25.

Experts warn of potential short-term panic for Bitcoin due to upcoming events, advising investors to focus on surviving the chaos rather than predicting the market's next move.

Bitcoin's price has been influenced by recent political events, but the anticipated influx of buy-side volume following these events has not materialized, raising questions about investor interest.

Circle's Collaboration with Sony and the Global Blockchain Landscape

Circle's CEO, Jeremy Allaire, is excited about collaborating with Sony's blockchain efforts, aiming to make USDC central to a consumer-scale ecosystem.

The focus on Web 3 and blockchain innovation in Asia contrasts with the slower progress in the US.

The discussion includes the potential impact of low interest rates on ETH dominance and the movement of investors into yield markets, which could affect the crypto landscape.

The speaker owns a token but is unsure about selling it, as they don't have a passion for it.

They discuss the impact of Boomer investors on the market and the potential for a shift towards gold and real estate.

The speaker anticipates a rate cut in January and believes it could stimulate the economy, while also analyzing the downtrend in Bitcoin and Solana's price movement.

Market Uncertainty Ahead of Wednesday's Catalyst

Salana's signals are not positive, with the market waiting for Wednesday's announcement.

The outcome of the rate decision could either stabilize the market or cause panic, depending on the figure.

The live stream on Wednesday will provide insights into the rate cut and its potential impact on the fall and the crypto market's trajectory towards 2025.