Economists Predict Fed to Slash Rates Twice This Year, Reuters Survey Shows

The majority of economists surveyed by Reuters predict that the U.S. Federal Reserve will cut its key interest rate twice this year, with the first cut expected in September. However, there remains a significant risk that the Fed may opt for only one rate cut or none at all. Recent shifts in market expectations, influenced by slower economic growth and persistent inflation concerns, have led to forecasts aligning more closely with the economists’ projections, despite the Fed’s cautious stance on rate adjustments. While the possibility of a rate cut in July has diminished, September remains the consensus among economists surveyed, with only a few expecting cuts earlier or at the upcoming policy meeting in June.