TechFlow news — Barclays economists now expect the Fed to start cutting interest rates earlier than previously anticipated, with rate cuts beginning in March instead of June, based on this week's inflation data. "Given recent progress on inflation, we believe the FOMC will feel comfortable starting to cut rates without needing to see a significant weakening in the economy or labor market," wrote Marc Giannoni and Jonathan Millar in a research note on Friday. As before, they anticipate the Fed cutting rates by 25 basis points at every other meeting. Their forecast assumes a "gradual economic slowdown" and an unemployment rate slightly above the Fed's long-term projection (3.5%–4.3% as of December). (Jinshi)
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