Fed anticipated to delay fee cuts as inflation dangers rise, economists say (Reuters ballot)

The U.S. Federal Reserve is now anticipated to carry off on slicing rates of interest till subsequent quarter, as issues over inflation develop, in line with a Reuters ballot of economists. Many who beforehand anticipated a March fee lower have now pushed again their forecasts.

A majority of economists surveyed between February Four-10 count on a minimum of one fee lower by June, although opinions range on the timing. Out of 101 respondents:

• 22 count on a lower in March
• 45 anticipate a lower within the second quarter
• Solely 17 forecast a lower within the second half of 2025
• 16 count on no cuts this yr

Rate of interest futures counsel a simply over 50% chance of 1 fee lower by mid-2025.

Details:

Since Trump’s re-election , inflation forecasts have been revised upward, with economists citing tariffs as a key danger to cost stability.

Over 90% of respondents who participated in each the October and February surveys raised their 2025 inflation forecast, with a median upward revision of 40 foundation factors. Almost 60% imagine tariff-related inflation dangers have grown, whereas solely two economists stated they’d declined.

Following 100 foundation factors of fee cuts between September and December, Fed Chair Jerome Powell and different officers have signaled that they aren’t in a rush to decrease charges once more. With a powerful job market and resilient client spending, many analysts imagine the U.S. financial system doesn’t at the moment want further stimulus.

This text was written by Aaron Cutchburt at www.ubaidahsan.com.



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