Fitch Ratings: Global Central Banks May Ramp Up Easing Measures, but the Fed May Have to Wait Until Q4

BlockBeats News, April 17th, Fitch Ratings stated that the unexpected weakening of the US dollar has created more room for global central banks to ease policies. Fitch currently expects the European Central Bank and emerging markets to further cut interest rates.

As the world economy slows down, the decline in commodity prices, including oil, will also stimulate countries outside the US to accelerate monetary easing. This will contrast with the Fed, as Fitch still expects the Fed to wait until the fourth quarter to cut rates. The report stated that despite the deteriorating outlook for US economic growth, the inflation outlook limits the Fed's ability to ease policy.

Fitch expects that tariff escalation will drive the US inflation rate up to 4.3% by the end of the year, up from the previous forecast of 3.6%. (FX168)