![]() ![]() While inflation, as measured by CPI, was forecast to average 8.0% and 3.7% this year and in 2023, respectively, a tight labor market was expected to underpin price pressures, according to the poll. They won't have enough evidence inflation is on a sustained downward course towards the target," said Sal Guatieri, senior economist at BMO Capital Markets, who also was among those polled. "We just don't see the Fed cutting rates next year, it would be too soon. Once the fed funds rate reaches a peak, the central bank is more likely to leave it unchanged for an extended period rather than cut it quickly, according to more than 80% of respondents who answered an additional question.įed Chair Jerome Powell has said he and his fellow policymakers will raise rates as high as needed and would keep them there "for some time" to bring inflation down to the 2% target. There was still no consensus among economists on where and when the Fed will stop hiking rates, and similarly there was no consensus on when it would start cutting them.Īmong the economists who had a view through the end of 2023, 47% forecast at least one rate cut, down from 57% in a poll last month. A majority of the economists, however, expected the central bank to opt for a 25-basis-point hike at its Dec. ![]() 1-2 policy meeting, is on a knife's edge, the poll showed. Whether or not the Fed slows its monetary tightening, either through a 50- or 25-basis-point hike at its Nov. The CPI jumped 8.5% in the 12 months through July. Labor Department is due to release consumer price index data on Tuesday, with economists polled by Reuters forecasting the CPI would rise 8.1% in the 12 months through August. 1 economy, which has seen its gross domestic product contract in the past two quarters, was expected to grow below its long-term average trend of 2% until at least 2025, according to the poll.Įconomists said the interest rate outlook for the September meeting could change if inflation drops. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |