Federal Reserve Policy Outlook 2

Saturn’s Position and Policy Implications

Astrological cycles indicate Saturn’s steady transit through Pisces supports a measured approach to monetary easing. This correlates with economic indicators pointing to gradual improvement without runaway inflation.

Rate Cut Trajectory

The Annual Letter suggests two incremental rate cuts by mid-2025, aligning with Saturn’s stabilizing influence. The Fed is expected to prioritize credibility and inflation expectations rather than aggressive stimulus.

Market Reactions

Equity markets may interpret the Fed’s restraint as a positive for long-duration assets like tech and growth, while bond yields may compress moderately as policy clarity emerges.

Risks to the Outlook

Unexpected geopolitical shocks or a resurgence of inflation could delay cuts. Saturn’s opposition aspects highlight caution in Q2 where volatility clusters may reprice expectations.