Economists Surveyed Believe Inflation Pickup Will Not Affect Federal Reserve’s Rate Cut Plans
According to a recent survey conducted by Bloomberg News, economists believe that the recent pickup in inflation will not change the Federal Reserve’s forecast for three interest-rate cuts this year and four in 2025. The Federal Open Market Committee is expected to keep rates steady at 5.25% to 5.5% for a fifth consecutive meeting next week, with the first reduction in rates predicted to occur in June.
The majority of survey respondents predict that Fed officials will plan for three or more rate cuts in 2024, with some expecting two or fewer. Overall, it is expected that the Federal Reserve will maintain a dovish stance on monetary policy in response to ongoing economic challenges.
The survey results suggest that despite the recent increase in inflation, the Federal Reserve remains committed to its plan of multiple rate cuts over the next few years. This decision may be influenced by the ongoing economic challenges that the country is facing, as the Fed looks to stimulate economic growth and support financial markets. The upcoming Federal Open Market Committee meeting will provide further insight into the Fed’s monetary policy plans and how they will address the current economic landscape.
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