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Economists predict the Federal Reserve will cut rates twice within the year. Expresses concerns to Walsh.
Deep Tide TechFlow News, March 13 — According to a Bloomberg survey, economists have pushed back their expectations for the Federal Reserve’s next rate cut from March to June, but still anticipate two cuts of 25 basis points each before the end of the year. The 46 economists surveyed expect a faster rate cut pace than the current futures market pricing, and more than one cut than the median forecast of Fed officials in December last year. Among the respondents, nearly one-third expressed concern about Kevin Waugh, the Fed chair nominee nominated by Trump.
When asked whether they believe Waugh will commit to achieving the Fed’s 2% inflation target, 13% were unsure, and 18% said “no.” In the December survey, economists expected rate cuts in March and September, while in the survey conducted from March 6 to 11 (after the Middle East conflict erupted), respondents anticipated cuts in June and October. The median forecast in the survey indicates that economists expect interest rates to be between 3% and 3.25% by the end of this year. (Jin10)