Economists Boost US GDP Forecasts, See Fed Rates Higher for Longer
- Recession odds cut to 30% in latest Bloomberg monthly survey
- Labor market seen staying strong, fueling consumer spending
Workers assemble cars at the Ford's Assembly Plant in Chicago.
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Economists once again upgraded their forecasts for US growth, spending and employment, but also see interest rates remaining higher for longer as above-target inflation persists.
The upper boundary of the Federal Reserve’s target range for its benchmark interest rate, currently 5.5%, will fall only to 4% by the end of 2025, according to the latest Bloomberg monthly survey. That’s a half percentage point higher than respondents expected just a month ago. The median projection shows just two quarter-point cuts this year.