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Economists Survey: Consensus on Fed Rate Cut Next Week, Divergence on Rate Path Next Year
Summary: According to a report by FXStreet, a survey of economists by Reuters shows that the Fed will cut rates by 25 basis points next week and again in December; however, there is significant divergence among economists on the interest rate level at the end of next year. Out of 117 economists surveyed, all but 2 ...
According to a report by FXStreet, a survey of economists by Reuters shows that the Fed will cut rates by 25 basis points next week and again in December; however, there is significant divergence among economists on the interest rate level at the end of next year.
Out of 117 economists surveyed, all but 2 predict the Fed will cut rates by 25 basis points on October 29, bringing rates to the range of 3.75%-4.00%. Another 2 predict a 25 basis point cut in October and a 50 basis point cut in December. The percentage of economists supporting another rate cut in December has dropped to 71%. The survey was conducted from October 15 to 21.
Regarding the interest rate level at the end of next year, economists have given seven different forecasts, ranging from 2.25% - 2.50% to 3.75% - 4.00%. Uncertainty has increased partly due to speculation on who will succeed Chairman Powell after his term ends in May next year.
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Link: Economists Survey: Consensus on Fed Rate Cut Next Week, Divergence on Rate Path Next Year [Copy]
