Survey Finds: Fed May Still Plan to Cut Interest Rates Later This Year

BlockBeats News, March 26th, according to a Reuters survey, economists believe that the Federal Reserve will keep interest rates unchanged before September. However, despite ongoing concerns about inflation caused by the Middle East war, these economists still expect at least one rate cut later this year. In contrast, the financial markets have completely ruled out the possibility of a rate cut this year and believe that the probability of a rate hike this year is as high as nearly 30%. This is because the US-Iran war has lasted for four weeks, causing the price of crude oil to rise by over 40%.

Economists expect that the impact of this energy shock will be more limited and of shorter duration. In the Reuters survey, economists' opinions on the level of interest rates by the end of 2026 are significantly divided, roughly falling into four categories: 28 people expect one rate cut, 37 people believe there will be two rate cuts, although 13 people expect interest rates to remain unchanged this year, there are also 4 people predicting three rate cuts. (FXStreet)