Survey: Majority of Economists Expect the Fed to Cut Interest Rates in September, with Another Cut Later This Year
BlockBeats News, August 15th - A majority of economists surveyed by Reuters expect the Federal Reserve to cut interest rates for the first time this year in September, followed by another cut before the end of the year as a base case scenario. Concerns about the health of the U.S. economy are growing in the current market environment.
Out of the 110 respondents, 67 individuals (61%) anticipate the Fed to reduce the benchmark interest rate by 25 basis points to 4.0% - 4.25% in September, marking the first cut this year. This is up from 53% in the July survey, with one person expecting a 50 basis point hike. The remaining 42 participants believe the Fed will keep rates unchanged. Over 60% of the respondents (68 out of 110) expect one to two rate cuts this year, similar to the previous month. However, there is no consensus on the level of the federal funds rate by the end of 2025.
Furthermore, 68% of the respondents also anticipate that the Federal Reserve's independence will not be significantly eroded during Powell's remaining term. (Jin10)
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