The FT’s lead story claims the US Federal Reserve will have to keep rates high for longer than markets anticipate, according to economists polled by the newspaper.
Fed will have to keep rates high for longer than markets anticipate, say economists
FT-Chicago Booth poll suggests bank will make two or fewer cuts this year, with the first between July and September
The Federal Reserve will be forced to hold interest rates at a high level for longer than markets and central bankers anticipate, according to academic economists polled by the Financial Times.
More than two-thirds of those surveyed in the FT-Chicago Booth poll think the Fed will make two or fewer cuts this year as it struggles to complete the “last mile” of its battle with inflation. The most popular response for the timing of the first cut was split between July and September.
That is a later start than expected in financial markets, where traders expect three cuts this year, with the first quarter-point reduction coming in June or July. The Fed’s current forecast, which is due to be updated on Wednesday, also sees three cuts in 2024.
https://www.ft.com/content/9d58ff6a-c6c4-4740-b3aa-5699a865c7f4