TechFlow news, on March 17, according to Jinshi reports, the Federal Reserve is expected to keep its policy rate unchanged this week, but Barclays economists have warned that the impact of tariff shocks could be more severe than what the FOMC has indicated in its Summary of Economic Projections (SEP). In a research report, they stated: "We believe the risks this year lean toward delayed rate cuts."
Barclays expects the Fed's SEP to show higher inflation and unemployment projections, along with lower GDP growth forecasts. However, Barclays economists anticipate a greater slowdown in GDP and a larger increase in inflation than reflected in the SEP.
They added: "Although we expect the SEP to indicate one rate cut this year, we still believe the committee will ultimately cut rates twice—by 25 basis points each—in June and September."
