Fitch: Fed Expected to Delay Rate Cut Until Q4 2025

BlockBeats News, March 18th, international rating agency Fitch Ratings stated that it has lowered its forecast for US 2025 economic growth from 2.1% to 1.7%. The US government has initiated a global trade war, which is expected to dampen US and global economic growth, increase US inflation, and delay the Fed's interest rate cuts. China and Germany's loose fiscal policies are expected to mitigate the impact of the US's increased import tariffs. It is anticipated that the Eurozone's economic growth this year will be lower than the forecast in the December 2024 Global Economic Outlook (1.2%). It is expected that the tariff impact will cause a short-term inflation increase of 1 percentage point in the US, and the Fed is expected to further postpone interest rate cuts until the fourth quarter of 2025. (Wall Street News)