BlockBeats news, on March 13, according to a Bloomberg survey, economists have pushed back their expectation for the Fed's next rate cut from March to June, but still anticipate two 25-basis-point cuts before the end of this year.
The 46 economists surveyed expect a faster pace of rate cuts than currently priced in by futures markets and one additional cut compared to the median forecast by Fed officials in December last year. Nearly one-third of the surveyed economists expressed concern about Kevin Warsh, the chair nominee proposed by Trump.
When asked whether they believe Wash would be committed to achieving the Fed’s 2% inflation target, 13% responded that they were unsure, and 18% answered “no.” In last December’s survey, economists expected the Fed to cut rates in March and September; in the survey conducted between March 6 and 11 (after the outbreak of conflict in the Middle East), respondents anticipated rate cuts in June and October. The median forecast in the survey indicated that economists expect interest rates to be in the range of 3% to 3.25% by the end of this year. (Jin10)