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Most economists see Fed holding key interest rate through March: Survey
A Reuters poll shows all 100 economists expect rates held at 3.50%-3.75% in January, with most seeing cuts only after Powell’s term ends in May.
- All 100 economists in the January 16-21 Reuters poll expect the U.S. Federal Reserve to keep rates at 3.50%-3.75% at its January 27-28 meeting, with 58% forecasting no change this quarter.
- Stronger growth and sticky inflation have kept the U.S. economy expanding 2.3% this year, with the Personal Consumption Expenditures index expected above the Fed's 2% inflation target.
- Most economists still expect at least two reductions later this year, a slight majority signalled cuts would resume once Jerome Powell's tenure ends in May, and some forecasters noted hikes could return later this year or next.
- Persistent inflation suggests the Personal Consumption Expenditures index will remain above the Fed's 2% inflation target this year, potentially keeping inflation elevated for years and complicating rate cuts.
- Looking further ahead, growth forecast through 2028 averages 2%, while Donald Trump may decide the next Fed chair next week, potentially altering cut timing.
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7 Articles
Coverage Details
Total News Sources7
Leaning Left1Leaning Right0Center4Last UpdatedBias Distribution80% Center
Bias Distribution
- 80% of the sources are Center
80% Center
L 20%
C 80%
Factuality
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