Fitch: Fed Expected to Cut Interest Rates Only Once This Year

BlockBeats News, March 18th, International rating agency Fitch Ratings stated in its latest Global Economic Outlook that it expects global economic growth to slow to 2.3% this year, well below trend levels and also below 2.9% in 2024. At the same time, Fitch Ratings lowered its US economic growth forecast from 2.1% in December last year to 1.7%, and lowered its 2026 growth forecast from 1.7% to 1.5%. Fitch Ratings said that tariff hikes would lead to higher prices for US consumers, reduce real wages, increase business costs, and a surge in policy uncertainty would impact business investment. It is estimated that the tariff shock will push US inflation up by 1% in the near term. We believe the Federal Reserve will postpone further policy easing until the fourth quarter of 2025. We now expect the Fed to cut rates only once this year, but with the economic slowdown and tariff levels stabilizing, we expect three more rate cuts in 2026. (FXStreet)