Wolters Kluwer: 100% of leading US economists expect Fed rate cut this week; Vast majority predicting 25bps reduction; 17% forecasting cut of 50bps
Since 1976,
Highlights include:
- A majority (86%) of economists forecast a September rate cut equating to 25 basis points (bps). Only 17% expect a cut of 50bps.
-
The consensus forecast calls for a 25bps cut at each of the three remaining
Federal Open Market Committee (FOMC) meetings this year – a total of 76bps. Additionally, economists anticipate 117bps of rate cuts spanning all of 2025. -
Economists forecast that the unemployment rate will rise to 4.4% next quarter – the highest since
October 2021 – with little change expected in 2025. - A significant majority (97%) of economists believe that AI will eventually disrupt labor markets, increasing demand in some sectors while reducing demand in others. Most (63%) also believe that change will occur in the next three to five years.
Each month’s Blue Chip Economic Indicators survey highlights the predictions of each individual panel member as well as a consensus – or average – forecast for the direction of variables such as real gross domestic product (GDP), consumer price index and the unemployment rate.
For more information about
About
For more information, visit www.wolterskluwer.com, follow us on LinkedIn, Facebook, YouTube and Instagram.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240917415642/en/
Frank Ready
Manager,
Legal & Regulatory
Office: 717-205-3647
Email: Frank.Ready@wolterskluwer.com
Source: