Reuters Survey: Due to war-driven inflation, the Federal Reserve will not cut interest rates until at least the end of the year

ME News message, April 22 (UTC+8). According to a Reuters survey of economists, as the energy shocks caused by the war have intensified again the already elevated inflation, the Federal Reserve will need to wait at least another six months before cutting interest rates this year. In the survey conducted from April 17 to April 21, of the 103 economists, 56 predicted that the Federal Reserve’s benchmark interest rate will be kept in the 3.50% to 3.75% range until the end of September. In the late-March survey, nearly 70% of economists expected at least one rate cut by then. In a survey from early March, most economists expected a rate cut by the end of June. In the latest survey, 71 economists still expect at least one rate cut this year; the median forecast indicates there will be only one rate cut, consistent with the Fed’s dot plot released last month. Currently, nearly one-third of economists expect interest rates to remain unchanged this year, a proportion nearly double that in the previous survey. (Source: Jin10)