Federal Reserve's Projected Rate Cuts for 2023: Insights from Reuters Poll
Tuesday, 23 July 2024, 13:04
Federal Reserve Interest Rate Cuts in 2023
The Federal Reserve is set to cut interest rates this year, as indicated by a growing consensus among economists from a Reuters poll. These rate cuts are expected to occur in September and December, reflecting a cautious outlook amid resilient U.S. consumer demand.
Key Factors Influencing Rate Cuts
- Consumer Demand: Strong consumer spending continues to support the economy.
- Inflation Pressure: Easing inflation is facilitating a more flexible monetary policy.
- Labor Market Insights: Recent indicators show signs of weakness in the labor market.
Overall, while all 100 economists surveyed believe the Fed will maintain current rates at the end of July, an overwhelming 82% predict the first rate cut will reduce the federal funds rate to the range of 5.00%-5.25% in September.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.