TechFlow News, March 13: According to a Bloomberg survey, economists have pushed back their expectation for the Federal Reserve’s next interest-rate cut from March to June, but still anticipate two 25-basis-point cuts by year-end. The 46 economists surveyed expect a faster pace of easing than currently priced in futures markets and one more cut than the Fed officials’ median projection from December last year. Nearly one-third of the surveyed economists expressed concerns about Kevin Warsh, President Trump’s nominee for Fed Chair.
When asked whether they believe Warsh would remain committed to the Fed’s 2% inflation target, 13% responded “uncertain,” while 18% answered “no.” In the December survey last year, economists expected rate cuts in March and September; however, in the survey conducted between March 6 and 11—after the outbreak of the Middle East conflict—respondents shifted their expectations to June and October. The survey’s median forecast indicates that economists expect the federal funds rate to stand between 3.00% and 3.25% by year-end. (Jinshi)
