Lates News

According to a survey by Bloomberg, economists have delayed their expectations for the next interest rate cut by the Federal Reserve from March to June, but still anticipate two 25 basis point rate cuts before the end of the year. The 46 economists surveyed expect a faster pace of rate cuts than the current pricing in the futures market and one additional rate cut compared to the Fed officials' median forecast in December last year. Nearly one-third of the surveyed economists express concern about Kevin Warsh, the chairperson nominee appointed by Trump. When asked if they believe Warsh will work towards achieving the Fed's 2% inflation target, 13% are uncertain and 18% said he will not. In a survey conducted in December last year, economists expected the Fed to cut rates in March and September, but in a survey conducted from March 6th to 11th (after the Middle East conflict erupted), respondents now expect rate cuts in June and October. The median in the survey shows economists expect interest rates to be in the range of 3% to 3.25% by the end of this year.