Economists Predicts 25bp Fed Rate Cut Over 50bp, Expects Additional Cut Before Year-End

Economists Predict Smaller Fed Rate Cut in September with Anticipated Additional Cut Before Year-End

Economists are anticipating a 25-basis-point reduction in the Fed rate in September, deviating from the previously expected 50-basis-point cut. Moreover, there is consensus among economists that another rate cut will likely occur before the year concludes.

Economists Lean Toward Smaller September Cut

Based on findings from a recent Reuters survey involving 107 economists, there is a prevalent expectation for a more conservative 25-basis-point Fed rate cut in September. This adjustment in the projected rate cut reflects a collective shift in sentiment among financial experts.

Conclusion

The insights provided by economists regarding the anticipated Fed rate cuts present a significant shift in market expectations. By adapting to a 25-basis-point reduction and foreseeing further cuts, experts are bracing for potential economic adjustments in the near future.