“The Federal Reserve will reduce the interest rate hike to 50 basis points in December (bp), but economists polled by Reuters say the biggest risks to the current outlook are a longer period of US central bank tightening and a higher spike in policy rates,” the latest survey said.
Notable conclusions
Inflation forecasts for the coming year and the year after are slightly higher than thought a month ago, suggesting that now is not yet the time to consider an imminent pause in the Fed’s tightening campaign.
The Fed will raise the federal funds rate by half a percentage point, to the 4.25%-4.50% range, at its December 13-14 policy meeting, according to 78 of 84 economists who participated in a Reuters poll. from November 14-17.
16 of the 28 who responded to an additional question said that the biggest risk was that rates would peak higher and later than they now expect, and four others said it would be higher and earlier. The rest said that it would be lower and earlier.
Most economists, 18 of 29, also said the biggest risk was that price rises would be bigger than they expected in the next six months.
Although 22 of the 30 economists said the recession would likely be shallow – the economy is expected to grow just 0.4% next year as a whole – fears of a deeper recession have led companies to cut thousands of jobs. jobs across the country.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
