US Commerce Secretary Lutnick expects the US economy to grow by more than 5% in Q1, with a possible 6% growth in 2026 if the Fed cuts

US Commerce Secretary Lutnick expects the US economy to grow by more than 5% in Q1, with a possible 6% growth in 2026 if the Fed cuts.

The expectation of over 5% growth for Q1 signals economic resilience, potentially influencing the Fed's stance on interest rates. If the Fed indeed cuts rates to foster this growth, we might see a firming of the USD and shifts in fixed income, as such moves typically spur borrowing and spending. This optimistic outlook could also encourage risk-on sentiment, impacting equities and forex markets.