According to The Kobeissi Letter, markets have fully priced in four 25 basis point interest rate cuts by the Federal Reserve by the end of 2025, signaling that traders expect the Fed to prioritize declining US economic output over concerns about a potential inflation rebound (source: The Kobeissi Letter Twitter, April 30, 2025). This expectation is likely to impact short-term and long-term bond yields, with traders positioning for lower yields and increased risk appetite in equities and cryptocurrencies. Market participants should monitor Fed policy statements and economic data closely, as any deviation from this pricing could trigger significant volatility.