Central Banks
Fed Rate Cuts Pit Economists Versus Markets on Timing, Depth
- Bloomberg survey shows four interest-rate reductions in 2024
- Economists dial back inflation forecasts through next year
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Economists see the Federal Reserve holding off on interest-rate cuts until mid-2024, contrary to market expectations the easing cycle will begin sooner.
Bloomberg’s monthly survey shows the median expectation is for the US central bank to reduce the benchmark rate by 25 basis points at the June 2024 policy meeting, followed by three more cuts in the second half of the year. The benchmark has been in a range of 5.25% to 5.5% since July.